Cryptocurrency spot trading volumes plummeted by 22% in Q2 2025, falling from $4.6 trillion in Q1 to $3.6 trillion according to TokenInsight data. This sharp decline—equivalent to $1 trillion in lost trading activity—stemmed primarily from weak altcoin performance and reduced market liquidity. Altcoins faced significant headwinds as investors shifted capital toward Bitcoin and stablecoins amid bearish sentiment, while macroeconomic pressures like inflation and interest rate hikes further dampened retail participation.
Spot trading volume across major exchanges including Binance, OKX, and Bitget dropped 21.7% to $3.63 trillion, with average daily volume falling from $51 billion to $40 billion. Conversely, derivatives markets proved more resilient, declining just 3.6% to $20.2 trillion as traders utilized futures and options for risk hedging and volatility speculation. Bitcoin rallied 31.6% during the quarter (reaching $111,000), but exchange tokens like BNB (+8.9%), OKB, BGB, and KCS underperformed due to their correlation with altcoin activity.
Market share shifted marginally among exchanges: Binance remained dominant at 35.39% despite a slight dip, while OKX, Bitget, and Gate gained ground. TokenInsight attributes the spot volume collapse to lack of new altcoin narratives, project failures, and Bitcoin/Ethereum dominance, warning that low volumes could precede further consolidation unless catalysts like regulatory clarity emerge.