Crypto Spot Trading Volume Drops 27% in June 2025

In June 2025, the spot trading volume on centralized exchanges (CEX) experienced a significant decline, dropping to $1.07 trillion, marking a 27% decrease from the previous month's $1.47 trillion. This decline represents the lowest trading volume recorded in nine months, highlighting a notable shift in market dynamics.

This drop in trading volume is indicative of broader changes within the cryptocurrency market, particularly the divergence between Bitcoin and altcoins. Bitcoin has maintained relative price stability, driven by institutional accumulation and its status as a safe-haven asset. In contrast, altcoins, including Ethereum, have underperformed, with prices down nearly 40% from their peaks. This performance gap underscores the market's internal dynamics, where institutional investors are primarily focused on Bitcoin, while retail participation in altcoins remains weak.

Market trends suggest a shift toward long-term institutional strategies, with retail speculation and altcoin liquidity continuing to decline. Institutional investors have been accumulating Bitcoin through spot ETFs and corporate balance sheet allocations, further solidifying its market position. For instance, companies like MicroStrategy have continued to increase their Bitcoin holdings through bond financing, while net inflows into spot ETFs have provided robust price support. This institution-driven capital inflow has not only stabilized Bitcoin’s price but also reinforced its dominance in CEX trading volume.

On the other hand, the altcoin market has been mired in underperformance. Ethereum, the second-largest cryptocurrency, saw its price drop nearly 40% from its all-time high, with other major altcoins like Solana, Cardano, and Polkadot similarly struggling. On-chain activity further corroborates this trend: Ethereum’s transaction volume and active address count declined significantly in June, indicating reduced user engagement and trading demand. This sluggishness is partly due to the high volatility and speculative nature of altcoins, which often rely on market rotation and catalysts from technological innovation.

Low retail investor participation is another key factor in the altcoin market’s struggles. Retail investors typically favor altcoins, chasing high-risk, high-reward opportunities. However, June 2025 data shows a significant decline in altcoin trading activity, reflecting retail caution. Many retail investors suffered losses during the 2021-2022 market crash, and the current price stagnation and lack of clear investment themes may further dampen their confidence. Additionally, the complexity of the altcoin market may pose barriers to entry. For instance, the intricate operations of DeFi protocols and the speculative risks of the NFT market may deter average investors. In contrast, Bitcoin’s simplicity and widespread recognition make it more accessible to newcomers, further exacerbating the altcoin market’s woes.

Another noteworthy trend is the shift in trading patterns. Historically, CEX trading volume was driven by retail-driven short-term speculation and leveraged trading, but June 2025 data indicates a decline in the proportion of leveraged trading, with spot trading gaining prominence. This shift may be linked to institutional investors’ strategies, which favor long-term holding over high-frequency trading. Additionally, decentralized exchange (DEX) trading volume showed no significant growth in June, suggesting a broader contraction in market liquidity. This liquidity crunch may further suppress altcoin trading activity, as altcoin price discovery and market depth heavily rely on an active trading ecosystem.

Presto Research analyst Min Jung’s commentary provides valuable perspective on market dynamics. She stated, “Despite Bitcoin remaining stable and close to its all-time high, the altcoin market is struggling, with most altcoins, including ETH, still down nearly 40% from their peaks. This suggests that the market is primarily driven by institutional purchases of Bitcoin, while retail participation, which typically favors altcoins, remains relatively subdued.” This analysis captures the core characteristic of the current market: the growing divide between institutional and retail investors in terms of investment preferences and market participation.

Institutional investors’ continued accumulation in the Bitcoin market is a key factor in maintaining market stability. Sustained inflows into Bitcoin spot ETFs, increased corporate adoption, and improved institutional custody solutions have provided solid financial backing for Bitcoin. This institution-driven market logic positions Bitcoin as the market’s “stable anchor,” while altcoins suffer from a lack of similar support. Conversely, low retail participation has left the altcoin market lacking momentum. Retail caution may stem from multiple factors, including prior investment losses, the absence of market catalysts, and unfamiliarity with complex investment tools. This divergence not only reflects differing motivations among market participants but also signals that the cryptocurrency market may be entering a more mature phase, with institutional long-term strategies gradually replacing retail short-term speculation.

The decline in CEX spot trading volume in June and the market’s internal divergence offer several implications for future trends. First, Bitcoin’s dominance is likely to persist in the short term. Institutional inflows and Bitcoin’s safe-haven attributes make it more appealing in an uncertain market environment. However, this may further compress the market space for altcoins unless they can find new growth catalysts. For example, further Ethereum upgrades or the emergence of new use cases could inject fresh vitality into the altcoin market. Second, a revival in retail participation will be critical to an altcoin market recovery. Lowering investment barriers, simplifying user experiences, and providing broader educational resources could help attract retail investors back to the market. Additionally, new market narratives or technological breakthroughs could reignite retail enthusiasm. Finally, restoring market liquidity will be key to future development. Whether for CEX or DEX, trading volume growth requires broader participation and a healthier ecosystem. The current liquidity contraction may be a short-term phenomenon, but if prolonged, it could have lasting impacts on price discovery and market depth. Investors should closely monitor on-chain data, trading volume trends, and shifts in institutional and retail behavior to gauge market direction.