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description: DEX is too slow to meet real trading requirements.
---

# Market Analysis

**DEX vs CEX Trading**

<table><thead><tr><th width="159">$4B VS $200B</th><th width="144">400ms VS 20ms </th><th>300 VS 50k tps </th></tr></thead><tbody><tr><td>Swap DEX &#x26; CEX daily transaction volume</td><td>Transaction confirmation time</td><td>One-application transaction throughput</td></tr><tr><td>80% of the trades come from high frequency trading (HFT).[1]</td><td>HFT requires transaction confirmation time of less than 20ms.</td><td>Whole network transaction throughput does not mean high throughput for a single dApp. HFT requires high transaction throughput.</td></tr></tbody></table>

\[1] https://www.nasdaq.com/articles/what-you-should-know-about-high-frequency-traders-amidst-covid-19-2020-04-08

**Trading Market**

<figure><img src="https://2426561517-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnrTLsePsvZzVYwLxHEcS%2Fuploads%2FWikPH9ryRUSkSddYsy2O%2Fimage.png?alt=media&#x26;token=04d9ff0d-8f1c-4a14-ae73-90817d83eae1" alt=""><figcaption><p>[2] Based on https://coinmarketcap.com/rankings/exchanges/ [3] https://dappradar.com/industry-overview</p></figcaption></figure>

**Key Indicators**

<figure><img src="https://2426561517-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnrTLsePsvZzVYwLxHEcS%2Fuploads%2Fr6Pc5e4RHfKRIVBWWZwL%2Fimage.png?alt=media&#x26;token=d42bcdbc-f9f8-42d3-9940-20b9955bfe72" alt=""><figcaption></figcaption></figure>
