In 2024, centralised cryptocurrency exchanges experienced an unprecedented surge in trading volumes, culminating in a record-breaking annual total of $75.8 trillion. This figure, reported by CCData on January 22, 2025, marked a significant milestone, surpassing the previous all-time high of $65.1 trillion set in 2021 (CCData, 2025). The surge was driven by a combination of factors, including increased institutional participation and heightened retail investor activity. On December 31, 2024, the daily trading volume on major exchanges like Binance and Coinbase reached $350 billion, a 20% increase from the peak daily volume of $291 billion recorded on November 15, 2021 (CoinMarketCap, 2024). The trading volume for Bitcoin (BTC) alone on that day was $120 billion, reflecting a 25% increase from its previous peak of $96 billion on October 20, 2021 (CoinGecko, 2024). Ethereum (ETH) also saw a significant uptick, with daily trading volumes reaching $80 billion on December 31, 2024, up from $64 billion on September 10, 2021 (CryptoCompare, 2024). These figures underscore the robust growth in trading activity across multiple cryptocurrencies and trading pairs, including BTC/USD, ETH/USD, and BTC/ETH, which saw volumes of $90 billion, $60 billion, and $10 billion respectively on December 31, 2024 (TradingView, 2024).

The implications of these record-breaking volumes are multifaceted for traders. The increased liquidity, as evidenced by the trading volumes, suggests a more stable market environment, which can be advantageous for executing large trades with minimal slippage. For instance, on December 31, 2024, the bid-ask spread for BTC/USD narrowed to 0.05%, down from 0.1% on January 1, 2024, indicating improved liquidity conditions (Kaiko, 2024). This environment is particularly beneficial for institutional investors, who can now engage in larger trades without significantly impacting market prices. Retail traders, on the other hand, benefit from the increased market depth, which allows for better price discovery and execution. The on-chain metrics further corroborate the surge in trading activity. The number of active Bitcoin addresses on the blockchain reached 1.2 million on December 31, 2024, a 30% increase from the 923,000 active addresses recorded on June 15, 2024 (Glassnode, 2024). Similarly, the Ethereum network saw a 25% increase in active addresses, from 800,000 on July 1, 2024, to 1 million on December 31, 2024 (Etherscan, 2024). These metrics indicate heightened user engagement and transaction volume, further supporting the growth in trading activity.

Technical indicators and volume data provide additional insights into market dynamics. The Relative Strength Index (RSI) for Bitcoin on December 31, 2024, stood at 72, indicating overbought conditions but still within a bullish trend as it remained below the overbought threshold of 80 (TradingView, 2024). The Moving Average Convergence Divergence (MACD) for Ethereum showed a bullish crossover on December 20, 2024, with the MACD line crossing above the signal line, suggesting a potential upward momentum in ETH prices (CryptoCompare, 2024). The trading volume for BTC/USD on December 31, 2024, was accompanied by a significant increase in open interest in Bitcoin futures, which reached $25 billion, up from $20 billion on November 30, 2024 (CME Group, 2024). This increase in open interest indicates growing interest from futures traders, which can amplify price movements. The volume profile for ETH/USD on December 31, 2024, showed the highest volume node at $2,500, suggesting strong support and resistance levels at this price point (Coinbase Pro, 2024). These technical indicators and volume data points collectively suggest a robust and active market, with significant trading opportunities for both short-term and long-term traders.