Global cryptocurrency trading volumes saw a significant decline in November, reflecting a market cooling period characterized by profit-taking and a substantial correction in Bitcoin’s price.
Centralized crypto exchanges (CEXs) experienced a sharp drop in spot trading volume to $1.59 trillion for the month. This represented a 26.7% decrease from the $2.17 trillion recorded in October.
The November figure marked the lowest monthly volume for CEXs since June, according to data analyzed by The Block. Decentralized exchanges (DEXs) mirrored this trend, with their monthly volume sinking to $397.78 billion. This was a 30% reduction from October’s $568.43 billion and also the lowest since June.
Vincent Liu, director of investments at Kronos Research, attributed the shift to market consolidation. He noted the market transitioned “from the frenzy of October to the flatness of November,” largely due to “profit-taking post-rally and compressed conditions.”
Bitcoin, the leading cryptocurrency, contributed significantly to the market’s slowdown. It began November trading around $110,000 but fell to a low of $81,000 by November 21. This marked a correction of over 30% from its all-time high of $126,000 achieved on October 6.
Among centralized platforms, Binance remained dominant despite a volume drop. Its spot trading volume decreased from $810.44 billion in October to $599.34 billion in November. Other major CEXs included Bybit with $105.8 billion, Gate.io at $96.75 billion, and Coinbase with $93.41 billion.
On the decentralized side, Uniswap led the segment with $79.98 billion in volume, down from $123.88 billion the previous month. PancakeSwap followed with $70.57 billion, a decrease from $102.02 billion in October.
The ratio of DEX-to-CEX trading volume also contracted in November, falling to 15.73% from 17.56% in October. Liu explained that thinner trading ranges in November favored CEXs due to their deeper liquidity and tighter spreads, making execution more efficient.
Conversely, decreased speculative activity and reduced incentives in decentralized finance (DeFi) slowed trading on DEXs, reinforcing the shift toward centralized platforms.
The broader cryptocurrency market’s consolidation suggests a “natural cooling” period after the hype observed in October. This phase could potentially lead to further price corrections if market liquidity does not return.
For investors, November served as a reminder of the market’s increasing maturity, characterized by less euphoria and potentially fewer explosive risks. While the sector anticipates December, with potential catalysts like the Federal Reserve’s monetary decisions, the lower trading volume might also be viewed as an opportunity for long-term accumulation, provided investor confidence is restored.
As of the article’s close, Bitcoin was trading around $86,200, down almost 6% in 24 hours and recording a cumulative drop of 21.6% over the preceding 30 days.