Spot trading volume on major centralized cryptocurrency exchanges (CEXs) has contracted for five straight months, with market leader Binance at the forefront of the decline. The slide began with a significant market event in October 2025, which triggered liquidations and reduced liquidity across both spot and derivative markets. While a minor recovery was noted in January 2026, the overall trend for the past year remains negative.
Binance's dominance in spot trading has notably diminished. Its share of global spot volume has fallen to approximately 20%, a significant drop from its previous leading position. Meanwhile, around 68% of spot volume has migrated to smaller, less prominent exchanges. Despite remaining a primary destination for Bitcoin (BTC) and Ethereum (ETH) deposits, actual trading activity on Binance has stayed subdued, with selling often concentrated during brief price recoveries.
A key driver of the outflow from CEXs is the decline in altcoin trading. Altcoin volume on Binance has fallen below 40% of its total, down from previous peaks near 60%. Traders have shifted activity towards meme coins and unlisted assets on decentralized exchanges (DEXs). However, DEXs have been unable to offset the broader market weakness; their volumes now constitute only 14.83% of CEX activity, down from over 21% in mid-2025.
The nature of spot trading has transformed, focusing on short-lived assets like newly launched meme tokens rather than established altcoins. Daily spot volumes have plummeted to roughly $111 billion, a stark contrast to the over $518 billion seen in October 2025. This decline is mirrored in derivative markets, with lower open interest and volumes. The Altcoin Season Index has retreated to 35 points, signaling a market environment dominated by Bitcoin.
The trend extends to decentralized markets, where PancakeSwap (CAKE) has lost its dominant share of DEX spot volume, falling from 77% in summer 2025 to just 12%. Part of this shift is attributed to meme token trading moving to the Solana ecosystem, though this has not been enough to boost overall DEX volumes. Analysts warn that thinner overall volume can lead to more reactive markets, increased vulnerability to volatility, and potential impacts on liquidity and order-book depth for traders.
