CEX Spot Volumes Plummet 50% to $322B as Investors Shift Hard into HODL Mode Amid Surging Bullish Sentiment
Centralized exchanges are seeing massive capital flight—not out of fear, but pure diamond-handed conviction.
The Great Accumulation
Trading volumes cratered from $636B to $322B as investors stop chasing pumps and start stacking long-term positions. Why sell when you believe every dip gets bought harder than the last?
Institutions finally get it: real gains happen off-exchange, in cold storage wallets they control. The smart money isn't trading—it's positioning.
Wall Street analysts scratching their heads at 'reduced liquidity' clearly never understood crypto's first rule: the strongest hands rarely show their cards. Guess they're too busy calculating management fees on underperforming ETFs.
In August, CEXs (centralized crypto exchanges) witnessed their spot trading volume dropping to $322 billion, a half size compared to January’s $636 billion, according to data reported today by CryptoQuant analyst Axel Adler Jr. That’s significantly down from records experienced earlier this year, indicating a decrease in trading activity. As highlighted in the analyst’s data, activity on CEXs is dropping, and the market is shifting into a token-holding attitude. This activity signals a wider market shift, with fewer assets not being put on sale and tokens not being actively moved on-chain. This implies traders decide to hold their coins, not engaging in active trading.
In January 2025, spot trading volumes reached $636 billion, but by August they had nearly halved to $322 billion.
Activity on CEX is declining and the market is clearly moving into HODL mode. pic.twitter.com/SL0XbkOeXX
Market Snapshot, Investor Expectation Strong
The drop in spot trading activity follows a volatile week marked by the release of U.S. economic reports setting the mood, institutional inflows, and a lot of price swings. On Tuesday, last week, September 9, the publication of the U.S job report indicated only 22,000 new jobs in August, much below expectations. Unemployment surged to 4.3%, reflecting a cool-down in the labour market. This weaker data drove crypto market momentum in Bitcoin, as investors anticipate the FED may lower interest rates to support the economy.
As a result, the week has been bullish with multiple whales (institutions) engaging in buying activity. Last Wednesday, a move by a whale to scoop WLD tokens worth $3 million significantly attracted attention on the Worldcoin cryptocurrency. On Saturday, another whale bought a massive 1.52 trillion PEPE coins valued at $15 million. Such large whale purchases often create excitement in the crypto market.
Bitcoin, which often drives the momentum of other crypto assets, is currently in a consolidation phase, but its market displays indicators of robust belief and long-term enthusiasm. Despite its price fluctuating between $108,245 and $116,016 over the past two weeks, major technical indicators show a surging wave of token acquisitions, particularly from long-term holders and mid-size wallet addresses. This behaviour appears to set the foundation for BTC’s next significant trajectory.
An important shift (disclosed by the analyst) is the rise of the crypto HODL level, reflecting the strength of conviction among investors. An increasing HODL level means that more investors choose to store their crypto tokens off exchanges and avoid engaging in short-term trading. Traditionally, this is a bullish signal for uptrend potential and long-term price stability.
BTC Braces for Decisive Move
These latest activities, as identified by the data above, happen when BTC’s price hovers in sideways movements. Despite no occurrence of a substantial breakout, the mixture of increasing HODL levels and token purchases indicates that the market is preparing for its next trajectory. The current correction stage indicates a reduced selling pressure from short-term investors and consistent purchasing from long-term customers.
