**THE RELATIONSHIP BETWEEN DEX AND CEX: WHAT DOES IT MEAN?**

First, we need to clearly understand the two basic concepts: DEX (Decentralized Exchange) and CEX (Centralized Exchange).

**DEX: A NEW SHAPE FOR DIGITAL BANKING**

DEX is a type of exchange that operates without third-party intervention. Tokens are exchanged directly between users.

**CEX: TRADITIONAL EXCHANGE**

A centralized exchange is a place where you need to trust the system, organization, and the entity that owns the tokens.

**THE RELATIONSHIP BETWEEN DEX AND CEX: WHAT DOES IT MEAN?**

When looking at the Total Volume, we cannot know where the money is going. The more important question is, "Where is the money being converted?".

The ratio between DEX and CEX can be seen as a chart to recognize market cycles.

**THE RELATIONSHIP BETWEEN DEX AND CEX**

When the amount of money exchanged on the centralized exchange (CEX) is much larger than that on the decentralized exchange (DEX), the market will enter a "Defensive" or "Deposit" state.

At this time, investors tend to focus on strong assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

Futures and Margin contracts are also widely used to increase profit potential.

**THE RELATIONSHIP BETWEEN DEX AND CEX**

Conversely, if the decentralized exchange (DEX) attracts more money, the market is in a "Speculative" or "Reallocation" state.

$LUNA , $USUAL .