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Understanding DEX vs CEX: where should you buy memecoins?: A Technical Analysis for Alt Asset Traders

By Altscreener AI
cryptocurrencydefitechnical-analysistradingcex:whereshouldmemecoins?

DEX vs CEX: Where Should You Buy Memecoins?

Memecoins have become a mainstream trading phenomenon, oscillating wildly between hype cycles. As veteran traders know, Dexentralized Exchanges (DEXs) like Uniswap, Raydium, PancakeSwap and others often see memecoins listed immediately after launch, whereas Centralized Exchanges (CEXs) such as Binance, Coinbase or MEXC tend to list only established names (Dogecoin, Shiba Inu) after their popularity is proven. Each venue has distinct liquidity, fees, and risks. Below we compare the two in detail, with data and examples, to help technical traders decide where to trade the next memecoin wave.

The Memecoin Phenomenon

Memecoins (joke-themed cryptocurrencies) now occasionally drive a sizable share of crypto trading volumes – but this share fluctuates. For example, Blockworks Research found that in early 2025 memecoins briefly accounted for 11% of all crypto trading volume during a political memecoin surge, but by April 1 their share had fallen below 4% (blog.cex.io). This illustrates one key feature: memecoin flows are episodic and highly speculative. Traders chasing “the next big pump” often flock to whichever platform offers the fastest access.

Two recent trends underpin the memecoin debate:

  • DEX-driven altcoin launches: New memecoins are typically created and launched on a blockchain (often via launchpads or community tools). High-frequency trading of brand-new tokens usually happens on DEXs. For example, Solana’s Pump.fun launchpad alone was responsible for 21% of all new crypto token launches across all networks in early 2025 (blog.cex.io). Those new tokens automatically flow into liquidity pools on Solana DEXs. As a result, Raydium (Solana’s leading AMM) has become a central hub for memecoin trading: Blockworks reports that Raydium processed “more than 80% of all memecoin trading volume on Solana” over the past 12 months (blog.cex.io). Even after the 2024–25 hype cooled, memecoins still made up >80% of Raydium’s volume in early 2025 (blog.cex.io) (blog.cex.io). Put simply, if a memecoin is fresh and hot, there’s a very good chance its earliest trading volume is on a DEX like Raydium or Uniswap.
  • CEX market share and liquidity: In contrast, CEXs still dominate overall crypto spot volume. For instance, in mid-2025 Cointelegraph reported CEXs handling ~$3.9 trillion in spot volume versus ~$877 billion on DEXs over the previous year. However, much of that volume is dominated by Bitcoin and Ethereum–stablecoin pairs. Among memecoins specifically, CEXs tend to list only the most popular ones. Dogecoin and Shiba Inu, for example, enjoy deep order books on Binance, OKX, Gate.io, etc. But dozens of smaller memecoins never get listed on major exchanges at all. Traders who only use CEXs often miss the early explosive moves of niche memecoin launches.

Why Buy Memecoins on DEXs?

Instant Listings and High Beta DEXs allow any project to create a trading pair almost instantly. Liquidity pools can be spun up in minutes on Uniswap, PancakeSwap, Raydium, etc. This means **akuysiing “pre-ftso”**: traders can buy a memecoin as soon as it’s minted, without waiting for an exchange listing. In bull runs, that first trading window can see **astronomical returns** (hundreds or thousands of percent). For instance, Tiger Research observed that *“during the recent bull run, memecoins on DEXs have significantly outperformed assets listed on centralized exchanges,”* driving traders en masse to DEXs ([www.cointeeth.com](https://www.cointeeth.com/news/liquidity-wars-can-memecoin-save-cex#:~:text=During%20the%20recent%20bull%20run%2C,are%20not%20listed%20on%20CEXs)).

Growing Market Share (especially on Solana) Recent data highlight DEXs’ rising influence. Raydium – fueled by Solana-based memecoins – **overtook Uniswap** as the top DEX by volume. By Jan 2025 it captured ~27% of all DEX trading activity, up from ~8% a year earlier ([www.gate.io](https://www.gate.io/learn/articles/in-the-battle-for-liquidity-are-memecoins-the-salvation-or-the-graveyard-for-cexs/8749#:~:text=The%20memecoin%20boom%20has%20fueled,core%20platform%20for%20memecoin%20trading)) ([www.theblock.co](https://www.theblock.co/post/323318/solana-dex-volume-soars-to-168-of-ethereums-mainnet-driven-by-raydiums-surge-in-market-share#:~:text=October%20saw%20Raydium%2C%20Solana%27s%20largest,DEX%20in%20the%20Ethereum%20ecosystem)). In October 2024, Raydium’s 30-day volume was *$22.3 billion*, compared to Uniswap’s $38 billion – up from just 7.6% market share in January to 18.4% in October ([www.theblock.co](https://www.theblock.co/post/323318/solana-dex-volume-soars-to-168-of-ethereums-mainnet-driven-by-raydiums-surge-in-market-share#:~:text=October%20saw%20Raydium%2C%20Solana%27s%20largest,DEX%20in%20the%20Ethereum%20ecosystem)). The Block attributes this surge to new tokens on Solana’s launchpads: *“the rise of pump.fun tokens have been a major driver of DEX volume”* ([www.theblock.co](https://www.theblock.co/post/323318/solana-dex-volume-soars-to-168-of-ethereums-mainnet-driven-by-raydiums-surge-in-market-share#:~:text=On%20Solana%2C%20the%20rise%20of,frequency%20trading%20of%20new%20tokens)). In other words, when memecoin wave hit Solana, traders poured onto Raydium in droves.

Lower Fees & Fast Finality (in Some Cases) On blockchains like Solana or BSC, transaction fees are extremely low and blocks are fast. Raydium’s advantage over Uniswap is partly technical: Solana’s sub-cent fees and 400 ms blocks make it ideal for quick, low-cost memecoin trades ([www.gate.io](https://www.gate.io/learn/articles/in-the-battle-for-liquidity-are-memecoins-the-salvation-or-the-graveyard-for-cexs/8749#:~:text=The%20memecoin%20boom%20has%20fueled,core%20platform%20for%20memecoin%20trading)). By contrast, high Ethereum gas fees have **“become a major barrier for memecoin traders,”** driving cost-sensitive retail to alternatives ([www.gate.io](https://www.gate.io/learn/articles/in-the-battle-for-liquidity-are-memecoins-the-salvation-or-the-graveyard-for-cexs/8749#:~:text=Meanwhile%2C%20Uniswap%E2%80%99s%20market%20share%20dropped,based%20DEXs%20fail%20to%20innovate)). (Uniswap’s DEX market share fell from 34.5% to 22% as of early 2025, according to one report ([www.gate.io](https://www.gate.io/learn/articles/in-the-battle-for-liquidity-are-memecoins-the-salvation-or-the-graveyard-for-cexs/8749#:~:text=Meanwhile%2C%20Uniswap%E2%80%99s%20market%20share%20dropped,based%20DEXs%20fail%20to%20innovate)).) In practice, this means small traders in particular can add or remove liquidity and swap tokens with minimal overhead on a Solana or BSC DEX.

Rich Ecosystem of Launchpads and Tools The DEX world has built tools to turbo-charge memecoins. For example, Pump.fun (a Solana launchpad) automated the token issuance and listing process, sending dozens of new memecoins to DEX pools overnight ([www.cointeeth.com](https://www.cointeeth.com/news/liquidity-wars-can-memecoin-save-cex#:~:text=During%20the%20recent%20bull%20run%2C,are%20not%20listed%20on%20CEXs)). Blockworks notes that Pump.fun users launched over 50% of all new Solana SPL tokens in early 2025 ([blog.cex.io](https://blog.cex.io/ecosystem/memecoins-q1-2025-34894#:~:text=based%20launchpad%2C%20is%20responsible%20for,throughout%20the%20last%2012%20months)), virtually all of which became tradeable on Raydium. This seamless pipeline means even projects with zero CEX support can see *explosive* growth on-chain. In fact, Tiger Research finds that DEX-centric pipelines *“allow new tokens to quickly achieve explosive growth even if they are not listed on CEXs.”* ([www.cointeeth.com](https://www.cointeeth.com/news/liquidity-wars-can-memecoin-save-cex#:~:text=During%20the%20recent%20bull%20run%2C,are%20not%20listed%20on%20CEXs)) This ecosystem effect is unique to DEXs.

Why NOT to Buy Memecoins on DEXs

Despite the upside, DEX trading has pitfalls:

  • Shallow Liquidity & Slippage: Early pools for memecoins can be tiny. A few thousand dollars swapped might move the price dramatically. If you try to buy a large position in one shot, slippage (price impact) can be 5–50% or more unless liquidity is deep. Traders need to monitor pool sizes (often denominated in ETH/USDC) and be willing to accept larger spreads. In contrast, popular memecoins on big CEXs may have thick order books.
  • Technical and Scams Risk: On DEX you must trust the token contract and routing algorithm. There have been countless rug pulls and honeypots in the memecoin space. A DEX trade is irreversible – if you buy a malicious memecoin contract, there’s no central authority to kick it off. Good practice (checking contract code, trading on well-known chains, using audited pools) is a must.
  • No Fiat / KYC: DEXs generally do not accept fiat or stable currencies directly; you need crypto in your wallet first. This means extra steps to move money in/out (bridge or CEX deposit). Also, lack of KYC and custodial oversight means you can’t use margin/debt, and your funds aren’t “insured” by any central entity.
  • Blockchain Congestion: On Ethereum DEXs, spikes in activity (“gas wars”) can slow trades considerably. By the time your transaction is mined, the price may have moved. This happened in 2021–22 during NFT and memecoin crazes on Ethereum. Solana and rollups mitigate this, but DEX trades are still on-chain events subject to network conditions.

Why Buy Memecoins on CEXs?

Deep Liquidity for Major Memes The largest memecoins (Dogecoin, Shiba Inu, Floki, etc.) are listed on major CEXs. These exchanges aggregate vast liquidity pools and offer features like order books and limit orders. This means tight spreads and the ability to execute large trades without instantly spiking price. For example, Dogecoin’s daily volume on Binance often totals billions of dollars (tens of millions of DOGE traded). If your strategy is trading a *whale*-like position in a well-known memecoin, CEXs provide the depth to minimize slippage.

Ease of Use and Tools CEX platforms offer robust interfaces: charting tools, margin trading, stop-loss orders, and portfolio management. Their login and KYC systems make it easy to deposit/withdraw via bank or credit card. If you want to quickly get in or out of popular memecoins without dealing with wallet bridging or gas, a centralized exchange is convenient. Many traders also choose CEXs for their fiat on-ramps and more familiar user experience.

Compliance and Security While “not your keys” is a drawback philosophically, CEXs usually implement some security measures (cold storage, audits) and are regulated entities (to some degree). Some traders prefer this for large amounts to avoid mistakes like sending funds to wrong addresses. That said, CEXs have been hacked in the past and can freeze accounts. But well-established exchanges tend to have better custody practices than holding a private wallet irresponsibly.

Established Price Discovery (for Big Coins) Since CEXs concentrate volume, their prices often lead the market for mainstream assets. If a memecoin is listed on Binance or Coinbase, many traders will look there first for the “true” price. Getting a sense of support/resistance on CEX charts can be helpful. However, note that for memecoins initially traded on DEXs, CEX prices may lag. In fact, Gate.io’s research notes Binance didn’t list some fast-rising memecoins early, and by the time they did, prices had already spiked on DEXs ([www.cointeeth.com](https://www.cointeeth.com/news/liquidity-wars-can-memecoin-save-cex#:~:text=3,of%20liquidity%20and%20market%20influence)) ([www.cointeeth.com](https://www.cointeeth.com/news/liquidity-wars-can-memecoin-save-cex#:~:text=During%20the%20recent%20bull%20run%2C,are%20not%20listed%20on%20CEXs)).

Why NOT to Buy Memecoins on CEXs

  • Delayed Listings: By design, CEXs vet and whitelist tokens. If a memecoin is brand-new, it won’t appear on Coinbase/Binance/OKX for weeks or months (if ever). Traders exclusively on CEXs miss early bird gains. For example, certain Solana memecoins launched via Pump.fun soared 100× on Raydium before any exchange listing was possible. The only way to catch those moves was via the DEX.
  • Limited Selection: Many niche memecoins never make it to major exchanges. Only big names achieve that status. If you have a speculative hero-token that’s popular on social media but not yet vetted, your only option is DEX trading. Some smaller CEXs (like MEXC, Gate, KuCoin) do list many memecoins quickly, trying to capture trading volume (www.cointeeth.com). But these often require tangential KYC and have even lower liquidity.
  • Regulatory Risks: CEXs might delist or refuse memecoin listings under regulator pressures. For instance, after the 2021 dogecoin boom, some exchanges tightened rules around ultra-speculative tokens. Stores of value versus tokens-of-fun sometimes clash with listing policies. If regulation changes (as Tiger Research notes), memecoin trading on CEX could be curtailed.

Key Metrics & Examples

  • Market Share of DEX Trading: In January 2025, Raydium alone held ~27% of all DEX trading volume (www.gate.io), largely thanks to memecoins. Uniswap’s share slid from 34.5% to 22% (Dec 2024 – Jan 2025) because traders unburdened themselves of high gas fees (www.gate.io). This indicates that, at least at the height of the craze, DEXs on low-fee chains were capturing avalanche flows.
  • Memecoin Volume on Solana (Pump.fun / Raydium): Over the past year, more than 50% of all new Solana SPL tokens were launched via Pump.fun (blog.cex.io). These tokens flowed into Raydium pools. As a result, Raydium processed >80% of all Solana memecoin trading volume (blog.cex.io). For context, Raydium’s nearest competitors on Solana (Aldrin, Orca, etc.) were barely on the map. A technical trader watching TVL charts would see that Raydium became the go-to hub for meme token liquidity.
  • What about CEX vs DEX Volume? According to a 2025 Cointelegraph analysis, global CEX spot volume was still ~4–5× larger than DEX . However, for memecoins specifically, a huge slice of early trading is happening on DEXs. One industry report notes that “exchanges like MEXC…quickly adapted to memecoin trading…while Binance reacted more slowly,” shifting price discovery toward DEXs (www.cointeeth.com) (www.cointeeth.com). In practice, if a token’s 24h Uniswap volume vastly exceeds anything on CEX, the DEX price effectively becomes the market price.
  • Example – “Pump and Dump” Cycles: Tiger Research highlights that platforms like Pump.fun can launch a new meme token that goes parabolic in minutes on DEX. CEXs miss that initial leg. For example, during the Jan 20, 2025 Trump token buzz, Solana-based memes briefly accounted for 70% of memecoin volume (blog.cex.io). Doge and Shiba (on CEXs) barely captured any of that action. Traders who had set up alerts on DEX pools reaped outsized gains.

Side-by-Side Comparison

  • Availability:
  • CEX: Only vetted memecoins; mainstream (DOGE, SHIB, etc). No fiat listings for brand-new projects.
  • DEX: Any ERC-20/BEP-20/Solana token. Instant listing. (If you can find the contract, you can trade it immediately.)
  • Liquidity & Slippage:
  • CEX: Generally deeper liquidity for big memecoins. Slippage low for large coins. Order books for limit orders.
  • DEX: Liquidity depends on user-funded pools. Fresh tokens often have shallow pools – larger orders cause big price impact. Many DEX traders use “slippage tolerances” and split trades.
  • Fees & Speed:
  • CEX: Typically 0.1–0.2% per trade. Instant off-chain trade execution; much faster order matching. No gas fees beyond withdrawals.
  • DEX: Pay network gas (often negligible on chains like Solana/BSC, or high on Ethereum). On-chain settlement means trade finality in seconds. But bear in mind network congestion can delay Ethereum trades.
  • Risk & Custody:
  • CEX: Custodial – exchange holds your funds. Protects users from on-chain slip-ups, but introduces counterparty risk (hacks, freezes). Regulated custody often means KYC required.
  • DEX: Non-custodial – you trade from your wallet. No AML/KYC. Total control (and total responsibility) over funds.
  • Tools & Analytics:
  • CEX: Integrated charts, alerts, sometimes social trading. Often provide margin/leverage.
  • DEX: External tools needed (e.g. DexTools, pseudonymous charts). No native margin on most retail DEXs (though some DeFi protocols offer leverage). But on-chain data is fully transparent to analyze (e.g. chain explorers, analytics dashboards) if you know what to look for.

Making the Decision

  • For Quick Speculation: If your goal is to catch the earliest “moonshots,” DEXs are usually the place. New memecoins often spike on Uniswap, Raydium or PancakeSwap before any exchange picks them up. In these cases, using a DEX wallet (MetaMask, Phantom, etc.) is essential. However, be extremely cautious: always verify token contracts. DEX trades can dump you just as hard as they pump, and there’s no customer support. Use small positions until you have confidence in the token.
  • For Established Memecoins: If you prefer somewhat lower risk and want better liquidity, stick to CEXs. By the time a memecoin gets listed on a big exchange, it’s usually well-known (and often partially “priced in”). But you gain the ability to use limit orders, leverage, and move fiat in/out. Technical traders might still front-run listings by watching social media or DEX volumes, then set limit orders on the CEX for when/if listing occurs.
  • Monitor Both Worlds: Many active traders use both approaches. You might stake capital in a CEX portfolio for core exposure (e.g. hold Doge or Shib for big moves) and simultaneously allocate a smaller, high-risk slice to FOMO buys on DEXs. Tools (like the one at altscreener.xyz) can help scan trending memecoins across DEXs and alert you when a new token gains volume. In fact, research shows that memecoin hype tends to circulate: a token that cools on DEX may pick up in color on CEX shortly after (and vice versa) (www.cointeeth.com).

Conclusion

In summary, trade venue depends on your strategy. For the high-octane, early-stage meme trades (and if you accept the technical hassles and risks), DEXs offer unparalleled access and potentially massive upside. For larger allocations, tighter spreads, and user-friendly experience, stick with CEXs and trade the memecoins that are already market-proven. Remember the metrics: Raydium’s astonishing market share, the 80% Solana-volume stat, and the Dip in Uniswap share all underscore that something is shifting. Keep an eye on on-chain liquidity pools and exchange order books – and let the data guide whether that next meme moonshot should be on Uniswap or Binance.

Sources: Industry research on memecoin trading on DEXs vs CEXs (www.gate.io) (www.gate.io) (www.theblock.co) (blog.cex.io) (www.cointeeth.com) (blog.cex.io). (See cited studies from Tiger Research, Blockworks, The Block, etc.)