In February 2025, there was a notable decline in global spot trading volumes on cryptocurrency exchanges, with a significant 23% drop month-over-month, bringing the total down to $1.3 trillion. This reduction is attributed to diminishing Bitcoin prices following recent highs, marking the second consecutive month of decreased trading activity and the lowest level observed since October 2024. The decline is part of a broader market consolidation, reflective of the volatile price movements seen in Bitcoin during early 2025.
Following January, when Bitcoin prices had soared above $108,000, the market saw a sharp correction as prices dipped below $80,000, representing nearly a 30% decrease. Historical data suggests that trading volumes usually surge during bullish trends, which makes the current downward trend particularly striking as it leads to a substantial month-over-month decrease in activity across exchanges.
The trading volumes on prominent cryptocurrency exchanges reflected widespread declines, with nine out of the ten highest-volume exchanges reporting decreases in February. Upbit, one of the major platforms based in South Korea, suffered the largest monthly drop at 46%, with its trading activity falling from $187.87 billion in January to $101.51 billion in February. Despite this downturn, Upbit retained an 8% market share.
Binance continued to hold a significant position in the market with a share of 49%, albeit with a 19% drop in volumes, totaling $651.48 billion. ByBit and Coinbase followed, commanding 13% and 9% market shares, respectively. Interestingly, Bitfinex was the only exchange to defy the trend, experiencing a 16% increase in trading volume. However, its market share remained minimal at just 1%.
When comparing February 2025 to the same period a year prior, the year-over-year data presents a more encouraging outlook for the cryptocurrency landscape. Total trading volume across major exchanges showcased a robust 45% growth when compared to February 2024. ByBit led this growth with an impressive increase of 116%. Coinbase also performed well with a 66% rise in volume, while Binance reported a 46% increase year-over-year. Even smaller players in the market, such as Bitstamp, displayed significant annual growth at 44%.
This juxtaposition of monthly declines against a backdrop of annual growth suggests that this period of reduced trading activity may be a temporary setback rather than a substantial shift in trading dynamics. The top three exchanges maintained their dominance of the market, collectively holding around 71% of the total market share, with little change from the previous month.
Overall, while February 2025 saw a marked decrease in cryptocurrency trading volumes when viewed on a monthly basis, a longer-term perspective reveals a strong upward trajectory when compared to the previous year, indicating resilience in the market amidst fluctuations in Bitcoin’s value.