Monthly trading volume on decentralized exchanges (DEX) reaches an all-time high of $463 billion.
=====================================================================================
In a remarkable turn of events, both decentralized and centralized exchanges witnessed all-time high trading volumes in December 2024. This surge was primarily driven by growing institutional demand and interest, particularly in Bitcoin and Ethereum, coupled with significant market momentum and bullish investor sentiment.
According to data from The Block and Kronos Research, the total trading volume on decentralized exchanges reached an unprecedented $463 billion, with Uniswap leading the pack at $106.4 billion, followed closely by Pancake Swap with $96.4 billion, and Raydium in third place with $58 billion.
On the other hand, centralized exchanges saw a three-year high trading volume of $2.78 trillion. A significant portion of this, approximately $950 billion, was attributed to Binance. The elevated trading volumes on leading OTC platforms during the same period also approached 2021 levels.
Neil Wen from Kronos Research attributed this increase in DEX and CEX volumes to renewed market activity, growing trust in DeFi ecosystems, and enhanced liquidity and trading tools on centralized exchanges.
The surge in institutional demand is evident from corporate treasury vehicles holding $113 billion in Bitcoin and $13 billion in Ether, indicating increasing institutional inflows as a major driver behind the surge in trading volume and price rallies. Bitcoin surged near $122,000, approaching all-time highs, while Ether price also hit multi-year highs, supported by bullish options activity.
Important market events like the launch of Bitcoin futures on major exchanges further propelled trading volumes on centralized exchanges. For instance, the introduction of Bitcoin futures trading on platforms like the Chicago Board Options Exchange in December increased investor participation and speculative trading, boosting volumes.
Ethereum recorded 39 million on-chain transactions in December 2024, about three times higher than Bitcoin’s 12.7 million, indicating heavy usage on decentralized networks, possibly linked to decentralized exchange (DEX) activity and DeFi growth.
In conclusion, these elements—strong institutional demand, favourable price trends, and new financial products—drove record trading volumes on both decentralized and centralized exchanges in December 2024, as reported by The Block and Kronos Research. This trend is expected to continue as the crypto market matures and attracts more institutional players and investors.
[1] Source: The Block (December 2024) [2] Source: Coin Metrics (January 2025) [3] Source: Kronos Research (January 2025)
- As the cryptocurrency market matured and attracted more institutional players, technology played a pivotal role in enhancing liquidity and trading tools on centralized exchanges, contributing to the record-breaking trading volumes observed in December 2024.
- The surge in trading volumes on both decentralized and centralized exchanges in December 2024 was not only driven by strong institutional demand and favorable price trends but also by the advent of new financial products, such as Bitcoin futures, which increased investor participation and speculative investing in the finance sector.
%20reaches%20an%20all-time%20high%20of%20%24463%20billion.){kind=link}