The cryptocurrency market experienced a significant slowdown in trading activity as the year drew to a close, with many traders and investors taking a break. Data reveals notable declines in trading volumes across major digital assets, though the hierarchy of the most traded cryptocurrencies saw some interesting shifts.
The Top Three: Trading Volume Leaders
Tether (USDT), Bitcoin (BTC), and Binance USD (BUSD) maintained their positions as the three most traded cryptocurrencies in the final month of the year. Despite their top rankings, each witnessed a substantial drop in trading volume compared to the unprecedented highs seen in November.
Tether (USDT) Holds the Top Spot
Tether, the world's leading stablecoin, remained the most traded cryptocurrency. However, its monthly trading volume plunged to approximately $603 billion in December. This figure represents a staggering 98-fold decrease from its record-breaking $59.6 trillion volume in November, which was largely driven by a flight to safety following the collapse of the FTX exchange.
Bitcoin (BTC) Sees Significant Decline
Bitcoin, the flagship cryptocurrency, secured the second position with a 30-day trading volume of $420 billion. This marked a 33% month-over-month decrease from its November volume of nearly $635 billion. Notably, December was the second consecutive month where Bitcoin's trading volume remained far below the $1 trillion levels observed earlier in 2022.
Binance USD (BUSD) Ranks Third
Completing the top three was the Binance USD stablecoin, which recorded a trading volume of $123.7 billion. Despite outranking Ethereum, BUSD was not immune to the market-wide downturn, experiencing a 55% drop in trading activity compared to the previous month.
Other Major Cryptocurrencies in the Top Five
The list of the five most traded digital assets was rounded out by two other significant players, both of which also faced declining volumes.
Ethereum (ETH) Drops to Fourth
Ethereum’s trading volume continued its downward trajectory throughout December, falling below the $100 billion mark. This represented a severe 70% month-over-month drop and an 80% decline from the $475 billion volume seen in October, securing its position as the fourth most-traded crypto.
USD Coin (USDC) Completes the Top Five
USD Coin, another major stablecoin, ranked as the fifth most popular crypto to trade. It recorded a 30-day trading volume of $72.8 billion, which was a substantial 40% drop from its November figures.
New Entrants and Shifting Rankings
The latter half of the top ten list saw significant reshuffling, with four out of the five cryptocurrencies that were ranked in November falling off the list entirely in December. Coins like XRP, Wrapped Ethereum (WETH), Dogecoin, and Polygon saw their trading volumes slump, opening the door for new entrants.
Solana (SOL) and BNB Hold Their Ground
Solana emerged as the sixth most-traded crypto, achieving a 30-day trading volume of $64.2 billion. The Binance Coin (BNB) followed in seventh place, though with a significantly lower trading volume of $19.7 billion.
The Rise of Aptos (APT)
A notable newcomer to the list was Aptos, which entered the rankings directly at eighth place. It registered a monthly trading volume of $18.1 billion. This trading activity was accompanied by a positive price movement for its native token, APT, which saw a 20% increase over the month, rising from $4.67 to $5.62. For those tracking such emerging assets, explore more strategies for identifying potential market movers.
Cardano (ADA) and Zilliqa (ZIL) Close the List
The final two spots in the top ten were claimed by Cardano and Zilliqa. Cardano recorded a monthly trading volume of $18 billion, while Zilliqa, another new entrant, closed out the list with a volume of $14.1 billion, highlighting the dynamic nature of crypto market liquidity.
Frequently Asked Questions
What caused the huge drop in crypto trading volumes in December?
The significant decline was primarily attributed to the end-of-year holiday season, during which many traders and institutional investors reduce their market activity. This seasonal slowdown is common across many financial markets, not just cryptocurrencies.
Why did stablecoins like Tether and BUSD maintain high rankings despite the volume drop?
Stablecoins are often used as a safe haven during market uncertainty and as a primary trading pair against other volatile cryptocurrencies. Their high ranking, even with lower volumes, underscores their fundamental role as a liquidity pillar within the crypto ecosystem.
What does the entry of new coins like Aptos and Zilliqa into the top ten indicate?
The appearance of newer projects in the most-traded list suggests shifting investor interest and speculation. It indicates that market participants are actively exploring assets beyond the established giants, potentially seeking higher returns in different segments of the market.
Is a drop in trading volume always a negative indicator?
Not necessarily. While often associated with decreased interest or a stagnant market, a volume drop can also represent a period of consolidation after high volatility. It can set the stage for the next significant price move, though the direction remains uncertain.
How can I track these trading volume metrics myself?
Most cryptocurrency data aggregator websites provide real-time and historical trading volume data across hundreds of exchanges. These platforms allow users to filter and sort cryptocurrencies by their 24-hour and 30-day trading volumes. To stay updated on these metrics, view real-time tools that offer comprehensive market data.
Will this trend of low volumes continue into the new year?
Historical patterns suggest that trading activity typically picks up again after the holiday season. However, broader macroeconomic conditions and specific crypto industry developments play a much larger role in determining sustained volume levels throughout the year.