Trading volume on centralised exchanges like Coinbase, Kraken, and Binance fell more than 46% in 2022.
Binance, the market leader, saw spot trade drop 45% to $5.4 trillion.
The most-traded digital asset, Bitcoin, saw trading volumes drop 31% year-over-year, the study reported.
In a holiday-shortened week to start the year, Bitcoin stayed in the tight range of either side of $17,000.
Last year, the Terra stablecoin ecosystem and the FTX empire collapsed, sending crypto prices down.
The asset class's low trade volumes suggest institutions have abandoned it for now.
After the FTX empire collapsed, market-watchers are fearful of additional bad news from other significant players.