Crypto Exchange Centralization: The Hidden Structural Risk in Markets
Crypto Exchange Centralization Recent exchange errors and operational irregularities have reminded participants of an uncomfortable truth: decentralization at the protocol level does not guarantee decentralization at the market level. Trading volume remains concentrated, custody layers remain clustered, and liquidity flows through a narrow set of infrastructure providers. This concentration exposes a structural weakness. When capital, order routing, and asset storage depend on a handful of venues, stability becomes conditional. Markets may appear resilient during calm periods, yet fragility increases beneath the surface. At the center of this issue lies crypto exchange centralization. Despite narratives celebrating distributed networks, price discovery and…










