Crypto Trading Volumes Rise 10% in January Despite Derivatives Slowdown

The cryptocurrency market demonstrated resilience in January, with spot trading volumes expanding by 10% month-over-month across both centralized and decentralized exchanges. Binance maintained its position as the market leader, driving much of this growth despite cautious sentiment in derivatives markets.

Centralized Exchanges Show Mixed Performance

Centralized exchange activity remained robust in January, even as leveraged liquidity continued to recede from the market. The data reveals a divergent performance across major platforms, with some exchanges posting significant gains while others experienced notable declines.

Uniswap led the growth trajectory with an impressive 84% increase in trading volumes compared to December 2025. Bitfinex followed with a 70% surge, while South Korean exchange Upbit expanded its activity by 44%.

However, not all platforms shared in the growth. HTX experienced the steepest decline at 19%, followed by Bybit with a 16% drop. KuCoin saw a more modest 7% reduction in January volumes.

Derivatives Market Loses Momentum

While spot trading flourished, the derivatives sector told a different story. Derivatives trading volumes contracted by 5% on average throughout January 2026, signaling that exchanges are operating with reduced leverage compared to previous months.

MEXC led the derivatives decline with a 36% drop, followed by Aster at 24%. This slowdown reflects more cautious market positioning among traders. Notably, Coinbase bucked the trend with a 49% increase in derivatives activity, while Hyperliquid recovered 19% of its volumes.

Binance's performance illustrates the market divide: the exchange posted a 12.5% increase in spot trading but only managed 0.7% growth in derivatives, underscoring the prevailing risk-averse sentiment. Market observers note that trading data may include bot-driven orders and wash trading, potentially affecting accuracy.

Web Traffic and Market Access Patterns

Exchange website traffic remained relatively stable month-over-month, though South Korean platforms Upbit and KuCoin experienced increased visitor numbers. MEXC continued its downward trajectory, losing 8% of site visits.

Retail Traders Seek Short-Term Positions

January's volume increase occurred against a backdrop of declining asset prices for most cryptocurrencies. Some decentralized exchanges and markets reached peak activity levels as traders liquidated positions.

The volume expansion stemmed partly from selling pressure alongside spot accumulation. Without clear directional momentum or greed-driven sentiment, the current spot-dominated market suggests major assets may enter a period of sideways trading.

Decentralized exchanges maintained a significant 16.9% share of centralized market activity. These platforms proved particularly popular among retail traders and for meme token transactions. Meanwhile, order sizes on centralized markets diminished.

Wallet Activity Reveals Market Dynamics

Recent weeks have seen the return of retail orders and participation from smaller whale wallets. Larger whales continued silent accumulation strategies but contributed minimally to active daily trading volumes.

Current market dynamics show smaller wallets accumulating Bitcoin and Ethereum while larger holders continue selling. This divergence occurs as the market trades with heightened uncertainty and volatility, with analysts questioning whether Bitcoin could face further downside in an extended bear market.

The crypto market benefits from record stablecoin supplies capable of supporting active spot trading, though liquidity remains concentrated primarily in Bitcoin and Ethereum.

Coinasity's Take

January's trading data paints a picture of a maturing market adjusting to more conservative risk parameters. The 10% spot volume growth coupled with a 5% derivatives contraction suggests traders are shifting away from high-leverage positions toward direct asset ownership. Binance's dominance persists, but the strong performance from Uniswap and Korean exchanges indicates diversification in trading venues. The whale-retail divergence—with smaller wallets buying and larger holders selling—could signal either smart money distribution or a transfer of holdings to stronger hands. Until directional conviction returns, expect continued volatility and range-bound price action.