The six largest centralized exchanges now control over 60% of spot activity as overall market participation contracts.
Crypto trading activity has fallen to its lowest level of 2026.
This is according to data from Kaiko, which shows daily spot volumes across tracked exchanges dropping to around $15 billion last week.
Centralized Exchange Volumes Fall as Trading Activity Cools
According to the Kaiko numbers shared by The Kobeissi Letter, daily trading volumes across 44 spot crypto exchanges have dropped 70% from peak levels in January, with the average daily volume trend also falling 50% since December 2025 to about $20 billion. Furthermore, the six largest exchanges now account for more than 60% of total trading activity.
However, not everyone agrees that crypto liquidation is disappearing, with pseudonymous crypto researcher Emperor Osmo arguing that the drop in trading volume on CEXs mostly reflects changing exchange dynamics.
Data from The Block shows decentralized exchange volume has been climbing all year relative to centralized platforms, going from a ratio near 20% in April to about 24% in July and above 46% so far in August, although the figures from this month are still incomplete.
“Centralized exchanges are simply losing market share to DEXs,” the analyst wrote.
Trader Jeff made a related point from a different angle, noting that stablecoin volume and active addresses are both up from last month and that holders of tokenized real-world assets jumped 51% in 30 days to 1.57 million. “The traders left, but the users stayed,” he wrote, with Wintermute head of OTC Jake O calling the shakeout healthy and arguing that “volume consolidating on the stronger venues is a net positive for the industry.”
Where the Market Is At
That drop has come with major cryptocurrencies trading well below their highs. Bitcoin (BTC), for instance, is changing hands near $64,000, up by about 2% in 24 hours but nearly 50% lower than its October 2025 all-time high. Ethereum (ETH) was trading close to $1,900, down 62% from its peak. XRP and Solana (SOL) are faring even worse, having dropped 70% and 75% from their ATHs, respectively.
You may also like:
Some critics have taken the decline as evidence of a longer-term move away from crypto, with AI becoming a stronger competitor for investor attention and capital. But other participants, including Korean trader Frontier Bet, believe that regulatory development such as approval of the CLARITY Act could attract capital back into crypto markets.
The odds for the bill’s approval have continued to drop, especially after the White House failed to respond to a key counterproposal from Thom Tillis and Ruben Gallego, who are pushing for stronger ethics provisions.
