Crypto Exchange Volume Plunges to 15-Month Low in December—Is This the Calm Before the Storm?

Crypto trading floors just got quiet—too quiet. Exchange volumes hit their lowest point in over a year this December, signaling a market-wide slowdown that's got everyone from retail traders to institutional whales hitting pause.

Where Did All the Volume Go?

Think of it as the market taking a deep breath. After the frenetic pace of the last bull run, December's slump isn't necessarily a death knell—it's a reset. The data doesn't lie: a 15-month low in activity paints a clear picture of collective hesitation. Some call it fear; others call it strategy. Either way, the order books are looking thin.

The Institutional Whisper

While the retail crowd might be spooked, the big players see this differently. For them, low volume periods are prime accumulation windows—a chance to build positions without moving the market. It's the financial equivalent of stocking up during a sale, assuming you believe the asset will be back in demand. Remember, Wall Street loves a vacuum.

A Cynical Take on the Quiet

Let's be real for a second. In traditional finance, this kind of volume drop would trigger panic, layoffs, and desperate CNBC segments. In crypto? It's just another Tuesday. The market's resilience—or its sheer detachment from old-world metrics—is either its greatest strength or its most glaring flaw. Sometimes, it's hard to tell which.

What's Next for the Digital Gold Rush?

History suggests these lulls don't last. Market cycles are built on these periods of consolidation. The current slowdown strips away the noise, revealing the underlying infrastructure and projects with real staying power. The next wave of volume won't come from hype—it'll come from utility, regulation, and the cold, hard pursuit of profit. The quiet never lasts forever.

CEX Volume Dips Sharply in December

Market data reveals a slump in centralized exchange (CEX) trading activity in terms of spot trading to a level that is 32% below November levels, with total trading activity dropping to around $1.13 trillion, which is the weakest level recorded monthly since late 2024, approximately a 15-month low that reflects a deceleration in engagement with the market.

Several reasons were identified for this decline, including typical holiday season inactive markets, limited price actions, and traders resorting to a ‘hold’ approach instead of engaging in active trade. Less active price actions in major markets led to a loss of incentives for frequent buying and selling in major trading pairs.

DEX Activity Also Slows

The volume shrinkage was not limited to the centralized platforms. Statistics indicate that there was a corresponding shrinkage in the volume of activity for the decentralized exchanges (DEXs), which declined by 20% in December from the previous month to an estimated total monthly volume of $245 billion.

Although platforms like Uniswap retained their leading status in the decentralized exchange space, the involvement of traders in automated market makers as well was softened, as was the case with the entire market.

Why Trading Activity Slowed

There were several factors that contributed to the decline in exchange volumes. Holiday periods are usually associated with fewer participants as traders withdraw from markets and inventional liquidity is lower compared to the activity levels in mid-year periods. With major currencies moving within tight ranges in the last year of the cycle, it appears that the breakout trades had little enticement. Traders exhibited a more conservative attitude in their participation.

This trend of smaller volume was in line with the on-chain data that indicated a lack of activity among Bitcoin, Ethereum, and the major altcoins towards the end of 2025, with a note from Santiment that there were low engagement levels compared to those of the previous year.