The competition among centralized exchanges (CEXs) for the on-chain trading market has entered a critical phase.

In the new market landscape, Binance is carving a unique path of integration. Building on the concept of "CeDeFi" first proposed by its founder Changpeng Zhao (CZ) in 2020, Binance is not merely seeking a simple combination of CeFi and DeFi. Instead, it aims to blur the boundaries between the two through technological integration and ecological synergy, allowing users to seamlessly step into the on-chain world.

On September 1, Binance launched a web-based wallet rebate program, offering up to 80% fee rebates. Just a few days earlier, on August 25, OKX announced the introduction of a "UI service fee" for certain token pairs on its DEX aggregator, alongside launching an invitation rebate program.

At the time, Binance founder CZ boldly predicted, "DEX trading volume will surpass CEX in the next 3-5 years." Although he later extended the timeline, his core belief remains unwavering: decentralized trading is an irreversible ultimate trend.

Whether due to internal competition among traditional rivals or the rising pressure from DEXs, it has become inevitable for CEXs to enter the on-chain battlefield and engage in a new round of competition.

However, there seems to be a barrier between centralized trading platforms and the free, open on-chain world. The complexity of on-chain operations, in particular, poses a high entry barrier for users. How CEXs break through this barrier has become a core challenge, and the rapid rise of Binance’s wallet recently has provided the industry with a potential solution.

Binance Wallet Breakthrough

The on-chain competition among exchanges is essentially a battle for Web3 entry points, with on-chain wallets becoming the "lifeline" in the new competitive landscape.

The "explosion" mentioned by Qingniao is a widely shared perception. Since the beginning of this year, Binance has launched a carefully orchestrated "blitzkrieg": Alpha 2.0, TGE (Token Generation Event), and Booster mission incentive activities have become three trump cards, attracting a large number of users to step into the on-chain world for the first time.

The wealth effect generated by a series of token incentive activities has become the best means to attract users. According to statistics, during the early TGE activities, users participated in token subscriptions for projects like Myshell, Particle, and KiloEx, with peak returns ranging from 1130% to 3412%.

In this regard, it is impossible to ignore Binance’s significant advantages as a leading trading platform in terms of brand, traffic, and ecological resources.

On the user side, Binance itself has a reserve of over 280 million registered users and a long-standing reputation. When it offers early participation opportunities and profit incentives through activities like Alpha airdrops, it can easily attract a large number of users to participate. This also leads to word-of-mouth spread on social media, attracting more incremental users.

Through Alpha 2.0, Binance has validated the effectiveness of its "integrated account" system. With a hybrid architecture of "on-chain trading, CEX clearing and settlement," users can seamlessly move between CEX and on-chain environments, achieving seamless asset circulation. This innovative solution bridges the gap between centralized and decentralized trading, improving user liquidity, capital efficiency, and accessibility. It will undoubtedly accelerate the growth of Web3 users and lay the foundation for connecting traditional financial digitization.

In CZ’s view, future exchanges should enable unified trading of all types of global assets. Whether it’s a building, a celebrity’s future IP income rights, or even personal net worth, all should be tradable in the same market. This not only maximizes liquidity but also makes price discovery mechanisms more efficient.

To achieve this vision, breaking down the barriers between CEX and DEX is an essential step. Binance’s practice shows that future competition will no longer be a fragmented opposition between CEX and DEX but rather about who can integrate more efficiently and seamlessly. It provides a feasible path for CeDeFi in the industry and signals that the competition for crypto financial infrastructure has only just begun.