Why Do CEXs Generally Offer Higher Liquidity than DEXs?

CEXs typically offer higher liquidity because they aggregate orders from a massive, global user base and employ professional market makers who commit substantial capital to their order books. This centralized aggregation of capital results in deeper order books and tighter bid-ask spreads.

DEXs rely on decentralized liquidity providers, which can be more fragmented and less capital-intensive, especially for newer or smaller asset pairs.