Decentralized Exchanges Are Challenging Centralized Platforms’ Dominance

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Decentralized cryptocurrency exchanges (DEXs) are increasingly challenging the dominance of centralized platforms, despite a recent $6.2 million exploit on Hyperliquid highlighting risks in DEX infrastructure.

A cryptocurrency whale profited at least $6.26 million from the Jelly my Jelly (JELLY) memecoin by exploiting Hyperliquid’s liquidation parameters, as reported by Cointelegraph on March 27.

This was the second major incident on the platform in March, noted CoinGecko co-founder Bobby Ong.

“JELLYJELLY was a significant attack, with Binance and OKX listing perps, leading to accusations of coordinated attacks against Hyperliquid,” Ong explained in an April 3 post. “It’s evident that centralized exchanges feel threatened by DEXes and won’t let their market share decrease without a fight.”

Hyperliquid ranks as the eighth-largest perpetual futures exchange by volume among both centralized and decentralized platforms, surpassing notable names like HTX, Kraken, and BitMEX, as noted in an April 4 research report.