KEYTAKEAWAYS
- DEX trading topped $320B, while CEX spot trading reached its highest level since May 2021.
- Grayscale Research: HYPE, ENA, VIRTUAL, JUP, JTO, and GRASS join the Top 20 list for Q1 2025.
- Matrixport: Bitcoin is consolidating recent gains, with the bull market likely to resume after.
CONTENT
DEX TRADING VOLUME HITS RECORD $320B, CEX SPOT TRADING SEES HIGHEST LEVEL SINCE MAY 2021
According to The Block, decentralized exchanges (DEXs) achieved a historic milestone in December 2024, with monthly trading volume surpassing $300 billion for the first time, reaching $320.5 billion. Uniswap led the market with over $103 billion in volume, followed by Pancakeswap and Raydium.
Centralized exchanges (CEXs) also posted impressive results, with spot trading volumes totaling $2.78 trillion, the highest since May 2021. Binance dominated the CEX market with $950 billion in trading volume.
Analysis:
This trend highlights a significant rebound in overall trading activity despite market volatility. On the DEX front, growth has been fueled by innovative assets (e.g., AI tokens) exclusively listed on DEXs and increasing trust in decentralized ecosystems.
Emerging projects like Hyperliquid demonstrate that substantial market valuations can be achieved even without CEX listings.
For CEXs, trading volume growth reflects ongoing improvements in liquidity and trading tools, attracting traditional users back to the market. Additionally, heightened market volatility has driven trading activity.
In summary, the concurrent rise of DEXs and CEXs underscores the diversification of the crypto market. Users are gravitating towards flexible and efficient platforms.
The distinct roles of DEXs and CEXs may become clearer in the future, with their competitive and complementary dynamics potentially driving further innovation across the crypto industry.
GRAYSCALE RESEARCH ADDS SIX NEW TOKENS TO TOP 20 LIST FOR Q1 2025
On December 30, Grayscale Research announced the top 20 crypto assets for Q1 2025. The list, updated quarterly to reflect high-potential and diverse assets, includes six new tokens: HYPE, ENA, VIRTUAL, JUP, JTO, and GRASS. Grayscale attributed their inclusion to alignment with three major market themes:
- Regulatory impacts on DeFi and staking from the U.S. presidential election.
- Breakthroughs in decentralized AI and blockchain applications for AI agents.
- The expanding Solana ecosystem.
Analysis:
Grayscale’s selection highlights current market hotspots and emerging trends:
- The upcoming U.S. presidential election could significantly impact DeFi and staking regulations. Investors may increasingly focus on related tokens to hedge against risk or capitalize on favorable policies.
- The rise of decentralized AI and advancements in AI agents open new application scenarios for blockchain, fueling innovation and market interest.
- Despite past challenges, Solana demonstrates strong ecosystem growth, technical advantages, and robust community support, cementing its position as a long-term contender.
The inclusion of these tokens signals Grayscale’s confidence in these emerging themes, offering investors entry points into promising sectors. As these trends develop, these tokens could attract more attention and contribute to the broader diversification of the crypto market.
MATRIXPORT: BITCOIN CONSOLIDATING GAINS, BULL MARKET LIKELY TO RESUME
On December 30, Matrixport reported that Bitcoin is undergoing a consolidation phase after a significant rally. Since October, open interest in Bitcoin futures has surged from $18 billion to $29 billion—a 50% increase—while funding rates have skyrocketed from 10%+ to 80%+.
Historical patterns suggest that rapid build-ups like this are often followed by a consolidation period before the bull market resumes.
Analysis:
- Rapid accumulation and consolidation: The spike in open interest and funding rates indicates strong enthusiasm for Bitcoin. However, elevated funding rates often signal short-term overheating, making consolidation a healthy market adjustment to prepare for further growth.
- Holiday effects on trading volumes: The holiday season has resulted in lower trading volumes, reducing price volatility but allowing the market to stabilize. This temporary lull could set the stage for renewed upward momentum.
- Outlook for the new year: As holidays conclude, the market may see fresh capital inflows, particularly from institutional investors. A stable macroeconomic environment could further enhance Bitcoin’s appeal as a hedge and growth asset.
In conclusion, Bitcoin’s current consolidation phase is more of a natural adjustment than a sign of weakness. Traders should monitor post-holiday capital flows and macroeconomic trends, as these will likely shape Bitcoin’s trajectory in the near term.
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