This week’s focus: How centralized exchanges are strategically integrating on-chain assets, leveraging their market reach.
CEX Strategic Integration Drives On-chain Activity
Crypto centralized exchanges (CEXs) are rapidly incorporating on-chain features, capitalizing on their extensive user bases.
Case Study: Bybit’s DEX Launch
Bybit announced ‘Byreal’, a Solana-based decentralized exchange (DEX) expected to launch later this year. This initiative includes integrated yield solutions (Revive Vault) and a token launchpad (Reset Launch).
Byreal utilizes a hybrid Request for Quote (RFQ) + Concentrated Liquidity Market Maker (CLMM) model. Critically, liquidity will be sourced from Bybit’s centralized counterparties, enabling on-chain users to access deep liquidity previously centered around the CEX interface. Integration within the main Bybit application appears likely.
Case Study: Coinbase’s Base DEX Integration
Following Bybit, Coinbase announced the imminent integration of Base DEX protocols into its platform, starting this week. This includes Base itself, with plans to eventually integrate DEXs from other blockchains.
This move provides Coinbase’s millions of users with ‘gas-less’ access to thousands of altcoins traded on Base (meme coins potentially included). While users pay standard CEX fees, the direct access is a significant advantage for DEXs, particularly Base’s primary competitor, Aerodrome ($AERO). The AERO token price notably increased 52% following the announcement.
Bloomberg previously questioned Coinbase CEO Fac Maghribi regarding funding for Base, suggesting revenues generated by DEX trading fees on Coinbase app users would flow to BNB Chain. Coinbase has acknowledged revenues accrue from marketplaces providing Base DEX liquidity, primarily Aave Markets (using its own AAVE token) and Observable Finance (using its $TANGY token). The company clarifies these represent trading fiats/marketplaces operating on Base, not the Base chain itself incurs fee collection.
Case Study: Binance’s Alpha Campaign & Wallet Penetration
Binance’s “Alpha” campaign, active since May, appears multifaceted. It includes trading competitions distributing Alpha Points for participating in specific asset trades, ostensibly rewarding volume (“trades”, likely меркантильно спекулятивные) rather than P&L.
This is twofold:
- Binance Wallet Adoption: Alpha points are accessible ONLY upon trading via Binance’s keyless Wallet, not the traditional CEX platform. This strategy significantly boosted wallet adoption:
[Placeholder block image reference: Source: Dune / Binance]
While these users incur CEX trading fees, the system effectively drives on-chain activity and potential future monetization.
- BNB Chain Ecosystem Boost: Established by Binance, Alpha Points serve as ‘voting rights’ in the ‘Alpha Hub’, ultimately receiving token airdrops from projects listed on the ‘Alpha Lane’ on BNB Chain, including NFT drops.
[Placeholder block image reference: Source: Dune / Binance Metrics]
The Binance Edge: Credit vs. Node Fees?
Observing Binance Lending Markets relatively lagging compared to Coinbase and Bybit regarding integrations suggests a potential strategic timing.
While Binance integrates DeFi base protocols, its peer-to-peer lending (credit) products function differently. It remains unclear if ‘credit node’ fees are distributed, which would add another on-chain data point visible to the broader ecosystem.
Industry Maturation
These CEX initiatives point towards a maturing on-chain economy. The complex DeFi infrastructure is now mature and secure enough for regulated entities to integrate compliantly into their technology stacks.
