November saw a significant slump in cryptocurrency trading activity, marking its lowest point since June. Data from CryptoAppsy indicates a drastic drop in centralized exchange trading volume, with $1.59 trillion recorded compared to the $2.17 trillion seen in October. This translates to a 26.7% decrease, reflecting the challenges faced by the market during this period. [Continue reading for insights]
**Why Did Major Exchanges Experience Volume Decline?**
Major platforms like Binance also felt the brunt of this decline, with their transactions plummeting from $810.44 billion in October to $599.34 billion in November. Bybit, Gate.io, and Coinbase experienced volume dips as well, signaling a broader market trend across exchanges. According to Vincent Liu, Chief Investment Officer at Kronos Research, profit-taking after prior price surges and reduced market volatility likely contributed to the decline. This, he argues, has resulted in more conservative investment strategies and lower liquidity.
**Decentralized Exchange (DEX) Activity Takes a Hit**
The trend wasn’t limited to centralized exchanges; DEXs also saw significant volume reductions. DefiLlama data shows that DEX trading volumes decreased from $568.43 billion in October to $397.78 billion in November. Uniswap and PancakeSwap, the top names among DEXs, also witnessed their lowest trading activity since June.
The proportion of DEX volumes compared to centralized exchanges dipped from 17.56% to 15.73%. Liu attributed this shift to market structural changes rather than shifts in investor attitudes. Centralized venues were more appealing during the narrowed trading pools due to their liquidity and pricing advantages.
**ETF Market Sees Similar Downward Trend**
The performance of the ETF market mirrored the downturn in traditional crypto, with U.S. spot Bitcoin ETFs recording a net outflow of $3.48 billion in November, compared to $3.42 billion inflows in October. This marked the largest monthly withdrawal since early 2025, reflecting a decline in institutional interest.
**What does this downward trend suggest?**
The November downturn highlights not just price fluctuations but also underlying market structural challenges. As this phase hints at a recalibration within the crypto trading ecosystem, all eyes are on the future strategies that investors and platforms might adopt to navigate emerging trends.