Decentralized exchanges (DEXs) are gaining momentum as the crypto industry matures, with trading activity shifting from centralized platforms to on-chain infrastructure. Varun Datta, CEO of Truth Ventures, attributes this trend to increased regulatory pressure, reevaluation of custody risks, and enhanced user experiences on DEXs. The collapse of FTX has prompted users to reassess platform dependency, driving a move towards self-custody and decentralized trading. Datta highlights that early DEXs faced challenges in speed and usability, but recent advancements in wallet technology and trading interfaces are closing the gap with centralized exchanges. Projects like Hyperliquid demonstrate that decentralized infrastructure can now compete in performance. As regulatory scrutiny on centralized exchanges intensifies, investors are focusing on the long-term infrastructure of DEXs, including trading systems and interoperability layers. While centralized exchanges may persist, the shift towards decentralized infrastructure is becoming increasingly significant in the Web3 ecosystem.