Liquidity Crisis Hits Crypto Market as Daily Volumes Plummet

Crypto trading activity has plummeted to its lowest level this year, with daily spot volumes across tracked exchanges dropping to around $15 billion last week. The six largest centralized exchanges now control over 60% of spot activity as overall market participation contracts.

According to data from Kaiko, the average daily volume trend has fallen 50% since December 2025, when it was at about $20 billion. Centralized Exchange Volumes Fall have dropped 70% from peak levels in January. However, not everyone agrees that crypto liquidation is disappearing.

Pseudonymous crypto researcher Emperor Osmo argues 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.

Major cryptocurrencies are trading well below their highs, with Bitcoin (BTC) 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.