The crypto market recorded a record-breaking DEX and CEX trading volumes in December, bolstered by the favorable political shifts.
The cryptocurrency market is ending 2024 on a high note, with decentralized exchanges (DEXs) achieving a record-breaking trading volume in December. According to the latest data, DEXs collectively processed $326 billion in trades, surpassing the previous all-time high of $299.6 billion recorded in November.
Leading the charge was Uniswap, which handled trades over $105 billion, securing a 32.2% share of the DEX market volume. PancakeSwap followed with $72.31 billion, accounting for 22.16% of the total trades, while Raydium, the top decentralized exchange on the Solana blockchain, posted $56.46 billion, contributing 17.3% of the total. Other notable players, including Aerodrome and Curve, also collectively added around $50 billion.
Moreover, data also reveals that this year alone saw the creation of over 60% of new crypto wallets in emerging markets. This signals the growing demand for decentralized financial solutions in regions with limited access to traditional banking systems.
CEX Volume Also Soars
The momentum wasn’t confined to DEXs; centralized exchanges (CEXs) also recorded a major uptick in trading activity. December’s spot trading volume on CEXs reached $2.78 trillion, the highest level since May 2021.
Binance emerged as the leader, accounting for $961 billion, or 34% of the total trading volume, while Crypto.com secured the second spot with $305.47 billion, representing 10.83% of the total. Other notable exchanges, including Upbit, Bybit, and Coinbase, also processed hundreds of billions in trades.
Crypto Market Resilient
This surge in trading volume comes amid a slight market downturn following Bitcoin’s all-time high of $108,000 in mid-December. Currently, Bitcoin trades around $93,700, while Ether remains steady above $3,400. Meanwhile, the overall cryptocurrency market cap stands at $3.29 trillion.
Analysts point to factors such as heightened volatility and improved infrastructure across blockchain platforms as key drivers behind this surge in activity across both DEXs and CEXs. Additionally, the regulatory optimism sparked by political developments in the United States is fueling confidence in decentralized trading.
The prospect of regulatory clarity, combined with hundreds of crypto-friendly candidates securing congressional seats, has amplified optimism within the industry. This anticipated policy shift is expected to create a more supportive environment for cryptocurrency innovation and adoption in 2025.
Moreover, 2024 has also been a year for regulatory clarity for spot Bitcoin and Ether ETFs. Since their launch in January, Bitcoin ETFs have attracted $35.66 billion in net inflows, while Ether ETFs have recorded $2.68 billion, as per the data by SoSoValue. Many believe these figures represent only the beginning, with institutional demand expected to grow significantly in the coming years.
As 2025 begins, the market appears poised for further growth, driven by an expanding base of institutional and retail participants.
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