At the time, GNS volcanologist Michael Rosenberg said that there was heightened unrest at the volcano.
However, today's alert level change comes as the volcano begins to settle down.
"On 29 December, volcanic tremor, which had previously been slightly elevated following a volcanic earthquake on 26 December 2020, declined to a low level, and has remained low," volcanologist Steven Sherburn said in the level change decision.
"While the temperature of the water in Crater Lake Te Wai ā-moe remains high at 40 degrees, taking all of the observations into consideration, the period of moderate to heightened volcanic unrest is now judged to have ended."
GNS says that while the alert level system should not be used to forecast future activity, at alert level one, eruptions are less likely than at level two.
Meanwhile, the summit area of the mountain, which the Department of Conservation closed on December 21, has reopened.
The area 2km from the centre of Te Wai ā-moe/Crater Lake was closed in response to the alert level being raised to level 2.
The 2km exclusion zone has now been lifted and there are no longer any restrictions in place.
The volcano last erupted in September 2007 without warning, with two lahars travelling down the mountain, with a seven-minute-long earthquake recorded nearby.