Crypto Market Liquidity Dries Up as Daily Volumes Hit 2026 Lows

The six largest centralized exchanges now control over 60% of spot activity as overall market participation contracts. Crypto trading activity has fallen to its lowest level of 2026. This is according to data from Kaiko, which shows daily spot volumes across tracked exchanges dropping to around $15 billion last week. Centralized Exchange Volumes Fall as Trading Activity Cools According to the Kaiko numbers shared by The Kobeissi Letter, daily trading volumes across 44 spot crypto exchanges have dropped 70% from peak levels in January, with the average daily volume trend also falling 50% since December 2025 to about $20 billion. Furthermore, the six largest exchanges now account for more than 60% of total trading activity. However, not everyone agrees that crypto liquidation is disappearing, with pseudonymous crypto researcher Emperor Osmo arguing that the drop in trading volume on CEXs mostly reflects changing exchange dynamics. Data from The Block shows decentralized exchange volume has been climbing all year relative to centralized platforms, going from a ratio near 20% in April to about 24% in July and above 46% so far in August, although the figures from this month are still in...