In December, spot trading volume on centralized cryptocurrency exchanges fell to its lowest level since September 2024.
According to The Block, centralized platforms processed approximately $1.13 trillion in cryptocurrency transactions last month. This is 32% lower than November's $1.66 trillion and 49% lower than October's $2.23 trillion.
Binance led the way with $367.35 billion in trading volume, followed by ByBit, HTX, Gate, and Coinbase.
The decline in activity on centralized exchanges in December reflects a confluence of seasonal sentiment and reduced volatility, as limited factors curbed participation, said Vincent Liu, chief investment officer at Kronos Research.
The shift of capital away from exchanges and the shift to alternative order execution venues further reduced volumes.
Decentralized exchanges also saw a decline in activity last month, with total trading volume falling to $245 billion. Uniswap maintained its market dominance with a monthly trading volume of $60 billion.
Despite the decline in volume in December, the growing share of DEXs relative to CEXs reflects a structural shift toward self-service, transparency, and capital efficiency, Liu added.
Volume incentives from airdrops continue to drive additional trading activity.