The rise of decentralized exchanges (DEXs) has significantly impacted the traditional centralized exchange (CEX) market. DEXs, operating on blockchain technology, offer users greater control over funds, enhanced privacy, and reduced reliance on intermediaries, challenging the dominance of CEXs. This shift has pressured centralized platforms to innovate, with some integrating hybrid models to retain users. Trading volumes on DEXs have surged, reflecting growing trust in DeFi ecosystems, while CEXs face declining market share in certain segments. However, CEXs maintain advantages like higher liquidity, faster transactions, and regulatory compliance, appealing to institutional investors. The competition has also spurred improved security and transparency across both models. Ultimately, the rise of DEXs is reshaping the crypto trading landscape, forcing CEXs to adapt or risk obsolescence as user preferences evolve toward decentralization and self-custody.