# May DEX Market Shows Strong Rebound, Bridging the Gap with CEX

The decentralized finance (DeFi) market experienced a significant rebound in May across major indicators such as trading volume, active users, and total value locked (TVL). Decentralized exchange (DEX) trading volumes surged nearly 30% over the month, signaling a recovery in liquidity and intensifying competition among different blockchain ecosystems. Dominating the trading volume landscape, Binance Smart Chain (BSC) led the pack, followed by Solana (SOL) and Ethereum (ETH). Layer-2 chains like Base and emerging players such as Sui and Hyperliquid also showed notable gains.

# DEX Volume Rises by 30%, Narrowing the Gap with CEX

According to DeFiLlama, the overall DEX trading volume in May reached approximately $668.7 billion, marking an increase of about 30% from the previous month. This rise can be attributed to growing risk appetite, the popularity of meme coins, and increased activity from major protocols. During this period, the market share of DEXs relative to centralized exchanges (CEX) stood at 52.77%, indicating a narrowing gap between the two. This trend reflects a recovering trust in decentralized ecosystems and a growing user base.

# BNB Chain Leads with $154.8 Billion in Trading Volume, PancakeSwap Surges Past Uniswap

On a blockchain basis, BSC recorded the highest trading volume at $154.8 billion in May. PancakeSwap, in particular, demonstrated significant growth, surpassing Uniswap by a wide margin. PancakeSwap’s monthly trading volume was $138 billion, compared to Uniswap’s $85 billion. The platform’s low transaction fees, quick processing speeds, and enthusiastic investment in new assets on BNB Chain contributed to its rapid liquidity absorption. In the first quarter alone, PancakeSwap’s cumulative trading volume exceeded $2 trillion, setting records for both user numbers and transaction counts. This achievement signifies a symbolic shift in DeFi liquidity towards BNB Chain-based platforms.

# Solana and Ethereum Follow, Layer-2 Chains Gain Traction

Following BSC, Solana registered $94 billion in trading volume, while Ethereum came in at $66.7 billion, securing the second and third spots, respectively. Solana maintained high user engagement thanks to its low-cost, high-speed transaction processing capabilities and meme-coin-centric traffic. Ethereum continued to hold a strong position due to its robust DeFi infrastructure, including Uniswap. Base ($30.9 billion), Arbitrum ($23.2 billion), Sui ($13.5 billion), and Hyperliquid ($9.1 billion) followed, illustrating the rising prominence of Layer-2 and emerging chains.

# Ethereum Retains Dominance in TVL, Sui and Hyperliquid Show Growth

In terms of TVL, Ethereum remained the leader with approximately $61.8 billion. The top ranks were rounded out by Solana ($8.7 billion), Tron ($6.6 billion), BNB Chain ($6.2 billion), and Bitcoin ($6.2 billion). Notably, Sui and Hyperliquid are experiencing impressive growth, with TVLs of $1.7 billion and $1.4 billion, respectively, showing double-digit increases. While Hyperliquid is not currently visible in active address metrics, its trading volume surged over 90%, attracting significant attention in its nascent ecosystem.

# Intensifying Competition Among Chains, Rapid Ascent of Base and Sui

May saw a clear trend of the DeFi market shifting from established players to Layer-2 and emerging chains. Base, in particular, showed a 31.29% increase in active addresses and exceeded $3 billion in monthly trading volume, rapidly enhancing its presence. Though Sui experienced a slight decline in activity over the month, its TVL and trading volumes continue to grow steadily.

Overall, the DEX market’s recovery is accompanied by accelerating competition among chains, with emerging players poised to bring substantial changes to the DeFi landscape. The dynamics of liquidity and market share expansions of these chains will be key points to watch in June.