@cindypadilla
Differences in token behavior on centralized (CEX) and decentralized exchanges (DEX) reveal insights about liquidity, trader demographics, and market health. On CEXs, tokens often enjoy deeper liquidity, higher trading volumes, and access to institutional users. However, reliance on a few exchanges introduces concentration risk. On DEXs, liquidity depends on community-provided pools, making slippage and price impact important metrics. Comparing bid-ask spreads, order book depth, and volume distribution helps highlight divergences. Additionally, arbitrage activity between CEXs and DEXs may reflect healthy market efficiency. If volumes on DEXs are consistently weak relative to CEXs, the project might lack genuine community adoption. A balanced distribution across both environments ensures resilience, accessibility, and broader market participation over the long term.
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