cryptocurrency exchange spot volumes experienced a significant cooldown in
January 2025, dropping 19.5% to $1.73 trillion from December 2024's
record-breaking $2.14 trillion.
The decline
occurred even though in January the market was reaching historical highs on the
Bitcoin (BTC) chart; however, it soon transitioned into a correction. The
outcome is also lower than that of November.
Crypto Spot Volumes Down
in January 2025
Asian
exchanges faced particular pressure, with South Korea's Upbit and Hong
Kong-based OKX seeing volumes
decline 34% and 24%, respectively. U.S.-based platforms showed relatively
better resilience, with Coinbase's 17% decrease matching the broader market
trend.
It is worth
noting that in November, the
market was driven by the euphoria surrounding Donald Trump's election
victory, which peaked in December when Bitcoin tested a
new all-time high above $108K. Although January saw a correction of this
move, the market proved to be overheated, leading to a downward correction
toward $95K. While trading
volumes remained high, they declined from the record levels of the past two
months.
However, the
data suggests a market consolidation phase rather than a fundamental shift in
trading patterns, with the top three exchanges maintaining their collective 71%
market share despite the volume decline.
Binance Holds Its Top
Position
Binance
maintained its dominant market position with a 46% share despite seeing volumes
fall 20% to $801.1 billion. ByBit and Upbit rounded out the top three,
commanding 14% and 11% market share respectively.
Notably,
Upbit experienced the steepest decline among major exchanges, with volumes
dropping 34% month-over-month.
Annual Growth Remains
Strong
Despite the
monthly decline, year-over-year comparisons paint a more optimistic picture.
Total trading volume across major exchanges surged 87.9% compared to January
2024. ByBit led the annual growth charts with a remarkable 184% increase, while
Coinbase and Upbit both more than doubled their volumes from the previous year.
Trump
continues to shake up the cryptocurrency market, making it difficult to predict
what February will bring. His recent decision to impose a 25% tariff on steel
and aluminum had a negative impact on token
prices at the beginning of the week, including XRP.
This article was written by Damian Chmiel at www.financemagnates.com.
http://dlvr.it/THtdNR
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