According to Bestwallet.com, trading volume on cryptocurrency exchanges fell 51% year-over-year to $1.2 trillion in January.
The third lowest level in 15 months
The past 2025 has been a turbulent year for cryptocurrency exchanges, with sharp swings in monthly trading volumes amid rising and falling prices. A sell-off at the beginning of the year, driven by global uncertainty and reduced risk appetite, was followed by record cryptocurrency valuations in May and then new all-time highs in October before the market corrected towards the end of the year.
Despite this headwind, the average monthly trading volume on cryptocurrency exchanges was $1.7 trillion, 20% below the 2021 record of $2.18 trillion, a milestone that is not surprising given that in January 2025 alone, cryptocurrency trading volume totaled $2.47 trillion, the sixth-highest monthly total on record. However, January this year points to a weaker start to the new year.
The 8% drop in Bitcoin and 5% drop in Ethereum prices last month has only increased risk aversion, putting pressure on trading activity on major exchanges.
According to Block, which tracks monthly spot trading volumes, cryptocurrency exchanges recorded $1.2 trillion in cryptocurrency transactions last month, up 6% from December. But still 51% less than in January 2025.
Moreover, this is the third lowest in 15 months, second only to October 2024 and December 2025, when $1.14 trillion and $1.13 trillion were recorded, respectively.
This suggests that traders are taking a more cautious, wait-and-see stance after last year’s volatility.
What to expect for the crypto market from 2026
Although trading volume last month was $1.27 trillion lower compared to levels a year ago, data from early 2026 may indicate a change in cryptocurrency market behavior after the peaks of the bull cycle. The 2017 bull market was followed by a deep cryptocurrency winter that began in January 2018 and caused a 56% drop in trading volume compared to the previous month. Moreover, it took ten months for trading volumes to stabilize and begin to recover.
Three years later, between May and July 2021, another bull cycle ended with a sharp market correction caused by regulatory pressure and macroeconomic uncertainty, causing trading volumes to fall 73% in just two months.
Exactly one year later, in May 2022, another major market shock led to a 26% drop in trading volume in one month. But this time it took cryptocurrency exchanges almost 15 months to recover and show the first signs of recovery.
For now, the cryptocurrency market correction at the end of 2025 looks different. Although trading volume fell 49% in just two months, less than the declines seen in 2018 and 2021, trading activity began to recover just three months after the correction, increasing 6% between December and January.
While it’s too early to determine a long-term trend, this could indicate a change in market behavior after a bullish trend where trading activity declines faster than cryptocurrency prices.
Which suggests a reduction in speculative moves rather than a mass exit from the market.
