If you've been following the wild ride of crypto in 2025, you've probably noticed the buzz around exchanges—specifically, the tug-of-war between decentralized exchanges (DEXes) and centralized ones (CEXes). A recent thread on X (formerly Twitter) from trader @0xkyle__, quoted and expanded by @tx0zz, dives deep into this shift, and it's got some juicy implications for meme token fans. Let's break it down in plain English, focusing on how this could shake up the meme token scene.

The DEX Boom and Its Slowdown

For much of 2025, DEXes—platforms where you trade directly on the blockchain without middlemen—were the stars of the show. Think Hyperliquid for perpetual futures (perps, which are like never-expiring futures contracts) and on-chain spots for those low-float, high-pump meme tokens. Why? They offered quick wins with less oversight, drawing in traders tired of CEX listings that often tanked on debut.

But as @0xkyle__ points out, this narrative is fading. The aggregate market share for Hyperliquid versus major CEXes peaked a couple of months ago and has been declining since. Here's a visual from the thread showing that trend:

Several factors are at play here. First, competition among perp DEXes like Lighter is heating up, making it a race to the bottom on fees. Second, a string of scandals—insider trading, celebrity scams, and even nation-state wash trading—has tarnished their rep. Remember the TRUMP token fiasco? It basically killed on-chain DEX hype overnight by highlighting how vulnerable these platforms are to manipulation.

For meme tokens, this is huge. Many memes thrived on DEX launchpads like Pump, where "meme cabals" (groups of coordinated traders) could pump prices with minimal barriers. But with transparency working against them—everyone can see whale moves and massive losses—the appeal is waning. Traders don't want their strategies exposed, especially in a space where privacy can mean the difference between profit and getting hunted.

The CEX Revival and Bybit's Edge

Enter the CEX comeback. Centralized exchanges like Binance have been regaining ground, partly because they've handled crises better in some eyes. But the thread highlights a potential "CEX vs CEX" battle, with Bybit emerging as a strong contender.

A key example? During a recent flash crash, USDe (a synthetic dollar stablecoin) depegged way more on Binance than on Bybit, causing pain for users. Check out these screenshots from the thread:

And here's an explanation from another post in the discussion:

@0xkyle__ argues that Bybit's professionalism—quick iterations, diverse offerings like stocks and forex, and even their Solana DEX experiment—positions it for growth. Pair that with Mantle, Bybit's Ethereum Layer 2 chain, and you've got a powerhouse. The $MNT token checks all the boxes for solid investments: aligned holders (no VC dumps), growing revenue, token utility (like fee discounts and launchpool access), and constant buying pressure from VIP traders.

@tx0zz zooms out for a broader view, explaining why CEXes are set to dominate. Perp DEXes relied on low KYC and high leverage (up to 100x), but regulations are catching up, leveling the field. Plus, the ultimate "crypto superapp" combines a CEX for distribution, a native chain/token for supply, and a stablecoin for flows. Binance is close with BNB, but it's a walled garden. Bybit + Mantle has more room to run, especially without heavy VC overhang.

What This Means for Meme Tokens

So, how does this tie back to meme tokens? Well, if CEXes take more market share, meme launches might migrate there for better liquidity and stability. Think fewer rug pulls and more structured pumps, but with the trade-off of KYC and less anonymity. Tokens like Milei or TRUMP showed how on-chain memes can go viral but crash hard— CEX listings could add legitimacy, attracting retail flows currently chasing memestocks.

For blockchain practitioners hunting alpha, $MNT looks asymmetric. It's ranked 34th by market cap, behind stuff like SHIB or LINK, yet backed by a billion-dollar exchange. As @0xkyle__ says, in a market where most alts are "toxic waste," exchange tokens like $MNT offer real utility and evergreen demand.

If you're into memes, keep an eye on how Bybit integrates them—maybe through Mantle's L2 for faster, cheaper trades. This shift could usher in a new era where memes aren't just pumps but part of bigger ecosystems.

Curious for more? Check out the original thread here. As always, this isn't financial advice—do your own research and trade smart.