Bitcoin has seen significant returns this year, with investors gaining over 160%. The price of Bitcoin could continue to rise due to several bullish factors, including the potential approval of a spot Bitcoin ETF, the Federal Reserve’s dovish policies, and the upcoming halving. However, decentralized exchange (DEX) tokens have also experienced a rally, driven by a lack of investor trust in Binance.

Decentralized exchanges operate without a central authority, reducing the risk of censorship or control by a single entity. They offer a higher degree of anonymity as they don’t require personal information for transactions. Funds are typically stored in personal wallets, reducing the risk of large-scale hacks. However, DEXs also have their drawbacks, such as the potential for bugs or vulnerabilities in smart contracts, lower liquidity compared to centralized exchanges, and a higher prevalence of scams and low-quality projects.

After Binance’s CEO pleaded guilty to breaking anti-money laundering laws, the exchange saw outflows, which may have benefited decentralized exchanges. The market dominance of Binance’s token, BNB, decreased, indicating a shift towards decentralized exchange tokens. This shift highlights the rising preference for decentralized alternatives as investors become wary of centralized exchange vulnerabilities exposed by regulatory and legal issues.

Trading volumes for DEX tokens have increased, with three out of five leading DEX token prices experiencing double-digit growth in the previous month. For example, Uniswap, THORChain, and Synthetix saw significant price increases. Uniswap’s total value locked (TVL) increased from $3 billion to over $4 billion, while Synthetix’s TVL more than doubled in Q4.

Investors continue to invest in crypto funds, with Bitcoin being a popular choice. However, DEX tokens could offer short-term returns greater than Bitcoin due to the wave of distrust in centralized exchanges. While Bitcoin is less volatile than small-cap tokens, DEX tokens may benefit from this sentiment and provide investors with higher returns in the short term.