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After ending 2025 with an average monthly trading volume of $1.71 trillion, the second-highest level on record, crypto exchanges entered 2026 with noticeably weaker activity, well below the levels seen at the start of last year.
According to data presented by Bestwallet.com, crypto exchange trading volume plunged 51% year-over-year to $1.2 trillion in January.
The Third-Lowest Level in 15 Months
Crypto exchanges had a turbulent year in 2025, with monthly trading volumes swinging sharply as prices went up and down. A sell-off early in the year, driven by global uncertainty and risk-off sentiment, was followed by record crypto valuations in May and then new all-time highs in October, before the market pulled back toward the end of the year.
Despite this head-spinning dynamic, crypto exchanges averaged $1.7 trillion in monthly trading volume, 20% below the 2021 record of $2.18 trillion. This milestone isn`t surprising considering that January 2025 alone saw $2.47 trillion in crypto trading, the sixth-highest monthly figure ever. However, this January points to a softer start to the new year.
Bitcoin’s 8% and Ethereum’s 5% price drops last month only continued to fuel risk-off sentiment, weighing on trading activity across major exchanges. According to the Block, which tracks monthly spot trading volumes, crypto exchanges recorded $1.2 trillion in crypto trades last month, 6% up from December but still 51% lower than in January 2025. Moreover, this is the third-lowest figure in 15 months, trailing only October 2024 and December 2025, which recorded $1.14 trillion and $1.13 trillion, respectively.
While $1.2 trillion in monthly trading volume is still a large figure in absolute terms, compared to the 2025 average of $1.7 trillion, it suggests traders are taking a more cautious, wait-and-see approach after last year`s volatility.
Is 2026 Pointing to a New Pattern of Post-Bull Market Recovery?
Although last month’s trading volume was $1.27 trillion lower compared to levels seen a year ago, early 2026 data may hint at a shift in how the crypto market behaves after bull-cycle peaks. The 2017 bull run was followed by a deep crypto winter that began in January 2018 and triggered a 56% month-over-month decline in trading volume. Moreover, it took ten months for trading volumes to stabilize and begin recovering.
Three years later, between May and July 2021, another bull cycle ended in a sharp market correction driven by regulatory pressure and macro uncertainty, sending trading volumes down 73% in just two months. Precisely a year later, in May 2022, another major market shock pushed trading volume down 26% in a single month, but that time, it took nearly 15 months for crypto exchanges to bounce back and show the first signs of recovery.
So far, the late 2025 crypto market correction appears different. Although trading volume dropped by 49% in just two months, smaller than the declines seen in both 2018 and 2021, trading activity started recovering just three months after the correction, rising by 6% between December and January.
While it is still early to define a long-term trend, this may point to a shift in post-bull market behavior, where trading activity cools faster than crypto prices, suggesting reduced speculative moves rather than a broad market exit.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
