Cryptocurrency Winter Deepens: Exchange Stocks Plunge as Trading Volume Evaporates
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The cryptocurrency market is bracing for a prolonged downturn as major exchange stocks have fallen as much as 60% amid a nearly 90% collapse in trading volume as October 2025.The dramatic decline signals a return to “crypto winter” conditions, raising concerns about the long-term viability of several key players in the digital asset space.
Exchange Stocks Take a Hit
Over the past three months, stock prices for leading cryptocurrency exchange operators – including Coinbase, Bullish, and Gemini – have experienced significant corrections, falling between 40% and 60%.This represents a significant reversal of gains seen throughout the previous year. The primary driver behind this downturn is a sharp decrease in trading activity, which has directly impacted profitability.
Trading Volume collapses
According to market research firm Newhedge, centralized exchange spot trading volume peaked in January and October 2025, reaching approximately $2.3 trillion (roughly 3,339 trillion won) in October. though, the market has as experienced a steep and consistent decline.Binance, which dominated the market with over 40% of total spot trading volume in october – exceeding $1 trillion (approximately 1,453 trillion won) – saw its volume plummet in subsequent months. November saw a decrease to $1.7 trillion (about 2,471 trillion won), followed by $1.2 trillion (about 1,744 trillion won) in December. By January 2026, trading volume had cratered to between $120 billion and $150 billion (approximately KRW 174 trillion to KRW 218 trillion), representing a nearly 90% reduction in just three months.
as of January, BinanceS trading volume stood at only $70 to $80 billion (about 101 to 116 trillion won), with most other major exchanges reporting similar declines. This contraction is attributed to a confluence of factors, including waning institutional interest, macroeconomic uncertainty, the Federal Reserve’s continued monetary tightening, ion due to the upward rally,” “financial austerity,” and a broader spread of risk aversion in the global market. Bitcoin’s nearly 11% decline in January – its largest monthly drop since 2018 – underscores this shift in investor behavior, with many now seeking refuge in safer assets or cash.
Ancient Parallels and the Need for Structural Change
The current decrease in trading volume echoes previous cryptocurrency collapse cycles,including those following the Mt. Gox collapse in 2014, the 2018 ICO bubble burst, and the liquidity crisis of 2022. In each instance, a “long winter” of significantly reduced transaction volumes ensued, with recovery taking considerable time.
Experts believe that, as in the past, substantive structural changes – such as greater integration with traditional finance, increased institutional acceptance, and technological innovation – will be crucial for a sustained market recovery. Without these changes, it will be difficult for exchanges to restore profitability and for stock prices to rebound.
Today’s market conditions, characterized by a nearly 90% evaporation of trading volume and halved stock prices for major exchanges, demand a strategic approach from investors. “What investors need is the strength to hold on until they rise again,” one market observer stated. Though, relying on intuition alone is insufficient.
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