CEX vs. DEX: Diving into the Data

Centralized exchanges and decentralized exchanges offer two completely distinct models for the provision of liquidity in the exchange of digital assets. Both CEXs and DEXs have a long list of merits and pitfalls, but this talk will focus specifically on the trade and order book data ingestible from each type of exchange. I’ll begin by defining liquidity and outlining existing difficulties in cryptocurrency markets, particularly for the long-tail of crypto-assets. I’ll then explore several trends in market data on each exchange, including volumes, trade size, and trade count. I will explore which measures are relevant in the context of each exchange, and how each exchange reacts to market movements.