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This article was first published on The Bit Journal.
Altcoin trading volume across major cryptocurrencies fell sharply in December, marking the lowest point of 2025 for XRP, BNB, and ADA. SOL also reached its lowest levels since 2024 during the same month.
This decline shows that the market is being guided more by caution rather than panic or fear. Many traders are waiting to see Bitcoin’s next clear move before they decide to enter new positions or place fresh trades.
The December decline shows more hesitation than fear. Arab Chain, a market contributor at CryptoQuant, reported that altcoin trading volume for major tokens fell to its lowest levels of 2025.
Liquidity on exchanges is decreasing, and traders are largely staying on the sidelines. Analyst GugaOnChain noted that mixed signals from Bitcoin are contributing to the cautious market behavior.
The numbers reveal the full depth of this slowdown. XRP closed December with roughly $32 billion in trading activity, marking the lowest altcoin trading volume it recorded this year. Binance alone contributed $12.3 billion to that total, highlighting how liquidity remains concentrated on a single platform.
$BNB experienced a similar fate, recording around $13.7 billion in total volume, with $12.6 billion of that occurring on Binance, showing that trading activity outside the main exchange has significantly decreased.
Solana experienced one of the most significant declines in activity. In December, its trading volume reached about $43 billion across exchanges, including $23.1 billion on Binance, marking its lowest real-time level since 2024.
Cardano followed a similar pattern, with approximately $3.8 billion in total transactions, $1.87 billion of which occurred on Binance. Across these assets, altcoin trading volume showed a consistent decline, indicating a strategic pullback from the market rather than a sudden rush to sell.
| Altcoin | Total December Volume | Binance Share |
|---|---|---|
| XRP | $32 billion | $12.3 billion |
| BNB | $13.7 billion | $12.6 billion |
| SOL | $43 billion | $23.1 billion |
| ADA | $3.8 billion | $1.87 billion |
The liquidity question becomes more important when stablecoins are examined. A report by CryptoOnChain showed that more than $2.68 billion in USDC left Binance on the Ethereum network between November 24 and December 22, with the largest one-week outflow in late November totaling $1.35 billion.
When significant stablecoin reserves leave exchanges, it leads to lower altcoin trading volume because there is less capital immediately available to buy. This reduction in liquidity has a noticeable effect on trading activity across major altcoins.
Market analysts suggest that larger institutional players may be behind these movements. They are shifting funds into cold wallets, conservative DeFi positions, or keeping them off-platform, which adds to the overall slowdown in market activity.
Bitcoin remains the key indicator for market risk appetite. Its latest pricing signals are showing mixed trends, creating uncertainty for traders. CryptoQuant analyst GugaOnChain reported that the BTC MVRV Z-Score stands at –0.24, a level historically associated with undervaluation and potential price stabilization.
At the same time, Binary CDD metrics show recurring distribution from long-term holders, which in the past has often preceded multi-month cool-offs. This combination of signals has led traders to make more cautious decisions, keeping altcoin trading volume subdued.
Market observers note that activity is paused rather than halted, with investors waiting for clearer direction from Bitcoin before committing significant funds.
The broader consensus indicates that recovery in altcoin trading volume will largely depend on Bitcoin showing a clear direction. Binance continues to serve as the main global liquidity hub, even as overall user activity has declined. This suggests that once confidence returns, trading could rebound quickly.
Market observers note that liquidity is ready to move back into the market as soon as Bitcoin provides clearer signals. Traders are staying on the sidelines for now, but a decisive move by Bitcoin could trigger a rapid increase in altcoin trading volume.
Altcoin trading volume in December hit its weakest levels of the year for XRP, BNB, and ADA, and the lowest since 2024 for SOL. The market shows a pattern of waiting rather than breaking.
Stablecoin withdrawals between November 24 and December 22 have reduced liquidity across exchanges. Unclear Bitcoin signals and thinned order books further highlight a market sidelined by strategy rather than panic.
Traders, institutional funds, and retail participants are keeping their capital parked until Bitcoin’s next move becomes evident. This silence does not indicate surrender and reflects a deliberate pause as the market waits for the next chapter to unfold.
MVRV Z-Score: Shows if Bitcoin is priced high or low compared to its real value.
CDD: Tracks movement of old coins to see long-term holder activity.
Cold Wallet: Offline wallet to keep crypto safe from exchanges.
Stablecoin Outflows: Large withdrawals of stablecoins, lowering funds for trading.
Liquidity: How easily a crypto can be bought or sold without affecting its price.
XRP, BNB, SOL, and ADA saw the biggest drop in trading volumes in December 2025.
Binance recorded the highest trading activity for XRP, BNB, SOL, and ADA.
XRP recorded about $32 billion in trading volume, the lowest it reached in 2025.
When large amounts of stablecoins left exchanges, there was less money available for trading, causing volumes to fall.
Solana’s trading volume dropped to about $43 billion, its lowest level since 2024.
Read More: Why XRP, BNB, ADA See Lowest Trading Volumes in December 2025">Why XRP, BNB, ADA See Lowest Trading Volumes in December 2025
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