Report shows CEX volume lowest since 2023

TLDR

Centralized crypto exchanges (CEXs) are seeing their weakest trading volumes since late 2023, signaling a cooler, more selective market phase.

1. A CoinGecko report shows Q1 2026 spot CEX volumes fell sharply, with March the lowest month since November 2023.
2. The drop reflects a broader "crypto winter": lower prices, less speculation, and flows shifting to ETFs, derivatives, DeFi, and real?world use cases.
3. Key things to watch are whether spot volumes recover with sentiment, how much activity migrates on chain, and how thin liquidity affects volatility and execution risk.

Deep Dive

1. What The Report Actually Shows

CoinGecko data cited by NewsBTC describe a "sustained" crypto winter, with total market cap down about 20 percent in Q1 2026 and daily trading activity down 27.2 percent quarter over quarter, averaging 117.8 billion dollars.CoinGecko report summary

Within that, spot volume on the top 10 CEXs dropped 39.1 percent quarter over quarter to 2.7 trillion dollars, and Marchs 0.8 trillion dollars was the lowest monthly CEX spot volume since November 2023. Binance still held roughly 37 percent market share, but every major CEX saw double?digit percentage declines.

2. Why CEX Volumes Are So Depressed

The same CoinGecko snapshot notes that large caps like Bitcoin (BTC), Ethereum (ETH), BNB, XRP, and Solana (SOL) all posted back to back quarterly losses, which naturally reduces speculative turnover.CoinGecko report summary

At the same time, other channels are absorbing activity. A Binance Research study highlights booming non?trading usage: stablecoin adjusted volume grew to 28 trillion dollars in 2025, tokenization volumes jumped 248 percent year over year to nearly 30 billion dollars, and weekend volume in TradFi?linked perpetuals climbed about 300 percent.Binance Research usage trends

These trends suggest some traders are moving from spot on CEXs into derivatives, ETFs and structured products, and others are using crypto more for payments, card spending, and tokenized assets instead of day trading.

3. What To Watch As Conditions Evolve

For market structure, low CEX spot volume usually means thinner order books, wider spreads, and a higher chance of sharp moves when big orders or news hit.

Going forward, useful gauges include:

1. Aggregate spot volume on the top exchanges and its trend by month.
2. The balance between spot and derivatives volume, and between CEX and DEX activity.
3. Flows into spot BTC and ETH ETFs, and stablecoin transfer volumes as a proxy for "dry powder."

If prices stabilize and macro risk fades while these volume metrics pick up, it would signal that this phase is more a cyclical lull than a prolonged structural decline.

Conclusion

CEX spot volumes hitting their lowest levels since 2023 fit a broader pattern of a cooler, more mature market with less speculative churn and more diversified use cases. For crypto users, the key is not just that volumes are down, but where activity is migrating and how thinner liquidity changes execution and risk during the next major move.