Trading activity across major cryptocurrency exchanges dried up considerably last month. December’s numbers paint a sobering picture for the digital asset market.
Centralized platforms processed roughly $1.13 trillion in transactions during December 2024. That’s a sharp 32% drop from November’s $1.66 trillion. Even more striking, crypto exchange volume fell 49% compared to October’s $2.23 trillion.
The pullback marks the weakest performance since September 2024. Binance maintained its dominant position despite the downturn, handling $367.35 billion in trades. ByBit, HTX, Gate, and Coinbase rounded out the top five.
So What Happened?
Vincent Liu from Kronos Research breaks it down pretty simply. December had all the wrong ingredients: holiday season vibes, boring price action, and traders closing their books for the year. “Limited catalysts kept participation muted.”
But here’s the thing. It wasn’t just the big centralized exchanges taking a hit. DEXs got hammered too. Trading on decentralized platforms dropped to $245 billion in December. That’s 20% down from November and 46% below October’s numbers. Uniswap kept its crown with $60 billion in volume, but still.
There’s a twist though. While total volumes tanked, DEX market share actually grew. The DEX-to-CEX ratio jumped to 17.95% in December from 15.92% in November. Last December, it was barely above 10%.
People Are Moving Their Money
Liu sees this as more than just a temporary blip. Traders are slowly shifting toward platforms where they control their own keys. Better tech, smoother transactions, and juicy airdrop rewards are pulling people toward DEXs.
Bitcoin’s been stuck in a rut lately. It was trading around $89,010 when we checked, up about 1.6% for the day. But zoom out, and it’s down 30% from that October peak everyone was celebrating.
“Bitcoin is consolidating near $87K-$89K,” Liu says. The short-term outlook? Pretty neutral, maybe slightly bearish. But the interesting part is what long-term holders are doing. They’re buying these dips, not selling.
The Broader Picture Gets Messy
Most altcoins are just sitting there doing nothing. A few coins tied to AI projects and real-world assets are getting some action, but overall? Pretty quiet.
Money’s been flowing off exchanges too. Some traders moved to alternative venues. Others just pulled their cash out completely. End-of-year positioning meant big players were reshuffling their portfolios, and that crushed volume across the board.
Looking at market share, Binance holds about 40% of total crypto exchange volume. They’ve kept that lead even as absolute numbers dropped. Smaller players like MEXC, Gate, and Bitget picked up users by offering lower fees and listing more obscure tokens. Competition heated up even as the pie got smaller.
Volatility basically disappeared. Without wild price swings, the momentum crowd had nothing to trade. No excitement means no volume. Simple as that.
Where Do We Go From Here?
Early January 2026 has shown tiny signs of life. The total crypto market cap sits around $3.1 trillion, up 1.4% recently. But 24-hour crypto exchange volume is only around $70.6 billion. That’s selective buying, not a flood of new money.
The Fear and Greed Index reads 34 right now. That’s “fear” territory, but better than last week’s 27. Still nowhere near what you’d call confident.
Some bright spots exist if you know where to look. Long-term holder supply turned positive recently for the first time in months. About 10,700 BTC got absorbed by strong hands. Exchange outflows suggest people aren’t rushing to dump their coins.
Technical analysts are watching key levels closely. Akshat Siddhant from Mudrex says a clean break above $89,500 could open the path to $100,000. But if we slip below $87,000? Could get ugly fast.
The market’s in this weird transition phase. DEXs are getting better and stealing share from centralized platforms. But the old guard isn’t going anywhere. Regulatory news could shake everything up as 2026 rolls on.
Will volume come roaring back? Probably. The real question is what triggers it. Another halving cycle narrative? Regulatory breakthroughs? A surprise catalyst nobody sees coming?
Right now we’re in wait-and-see mode. Traders are cautious. Institutions are careful. And the market’s just… waiting.
One thing’s certain though. When crypto exchange volume does come back, it’ll come back fast. It always does.
Why did crypto exchange volume tank so hard in December?
Holiday season timing, zero volatility, and year-end portfolio shuffling all hit at once. When Bitcoin’s barely moving, and it’s the end of the year, traders just log off. There wasn’t any reason to be active.
Should I worry about centralized exchanges losing ground to DEXs?
Not really a worry, more like evolution. DEXs are grabbing market share slowly, but centralized exchanges still dominate. Both will likely coexist for years. Use whatever fits your trading style.
What needs to happen for volume to pick back up?
We need a catalyst. It could be Bitcoin breaking $90K convincingly, new ETF approvals, clearer regulations, or just good old-fashioned FOMO. Markets move on narratives, and right now there isn’t one.
Is low volume good or bad for prices?
Depends on who you ask. Low volume can mean a calm before the storm or just a dying market. Right now it looks more like consolidation than capitulation, especially with long-term holders accumulating.
Get the news in a Jist. Follow Cryptojist on X and Telegram for real-time updates!
Disclaimer:
Look, we’re just journalists reporting the news here, not your financial advisors. Everything you read above is for information purposes only. Crypto is wild, unpredictable, and can absolutely wreck your savings if you’re not careful. Never invest money you can’t afford to lose. Seriously, we mean it. Do your own research, talk to actual licensed financial professionals, and remember that past performance means absolutely nothing when it comes to future results. The crypto market can turn on a dime, and what’s hot today might be toast tomorrow. We’re not responsible for your investment decisions, good or bad. Trade smart, stay safe, and don’t bet the farm on anything you read on the internet, including this article.
Bitcoin 
Tether 
BNB 