My understanding is that retail is moving to DEXes. Uniswap just passed Coinbase in total trading volume. Retail investors are quite reasonably getting tired of getting screwed and opting out entirely.
True retail is mostly on CEX's. Folks on DEX's are mainly power users.
Also there are two reasons why DEX's have high volume:
- Long tail of assets are only on DEX's. Average retail isn't buying these
- DEFI protocols utilize DEXs. I would argue most of the volume isn't people trading, rather automatic trading to support protocols like Yearn.finance
