Mid-tier crypto exchanges gain ground amid $3 trillion market cap milestone

December's cryptocurrency exchange volume reached $2.94 trillion, marking the second consecutive month above the $2 trillion threshold and representing an 8.5% increase from November's $2.71 trillion. 

While Binance maintained its market-leading position with $1 trillion in volume, several mid-tier exchanges demonstrated significant growth. BitGet's volume doubled from $88 billion in November to $178 billion in December, while OKX and Huobi processed $177 billion and $95 billion in transactions, respectively.

The volume distribution suggests an evolving market structure, with mid-tier exchanges capturing a larger share of total market volume and APAC-based platforms showing increased prominence.

This shift in trading activity indicates broader geographical participation and a more diverse investor base. The robust volumes coincided with strong market performance, as Bitcoin traded consistently in the $90,000-$94,000 range and the total cryptocurrency market capitalization remained above $3 trillion.

Altcoins benefitted from the month, as Bitcoin's dominance dropped to monthly lows of 51% before ending the year at 54%. Bitcoin dominance is commonly used to indicate when capital is rotating between Bitcoin and Alts. 

Multiple factors appear to be driving market dynamics, including growing retail participation across various regions, novel product offerings from smaller exchanges and enhanced market infrastructure supporting higher volumes.

The increased activity also reflects broader institutional acceptance of cryptocurrency trading, particularly as markets anticipate President Trump’s inauguration this month.

We’ll see if the trend continues as institutional traders return to their desks after the holiday period.

This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.