In cash flow analysis, looking at the total volume is not enough. A more important question is: where is the money traded? The ratio between CEX and DEX serves as a compass for the market cycle.
🔸 When the volume of CEX exceeds the volume of DEX, the market is in a state of risk or accumulation. Here, capital is concentrated on:
Mainly BTC, ETH, SOL.
Futures and margin for trading with leverage.
Large funds are buying OTC or quietly accumulating. This is a platform for cold logic and large capital.
🔸 When DEX volume surges sharply and captures a significant market share from CEX, the market enters a state of risk, also known as Degen Mode. Here capital hunts for:
Low-cap projects that are not yet listed on CEX.
Memorable coins.
Profit farming.
👉 History shows that when DEX volume catches up to or exceeds CEX volume, it is often a sign of peak euphoria and an inevitable local maximum.
🔹 Monitor the DEX to CEX ratio.
If the ratio is low <10% 👉 Focus on trading main coins on CEX; money prioritizes security.
If the ratio heats up >20% 👉 Shift part of the capital to Web3 wallets and look for Onchain opportunities, as speculative money is crazily seeking changes in life.
Are the funds sitting obediently in safe wallets, or are they wandering through the DeFi jungle in search of loot?
News is for reference, not for investment advice. Please read carefully before making decisions.
