Crypto Spot Trading Plummets, But Fear Not, Derivatives Are Here to Save the Day!

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Oh, dear! Cryptocurrency spot trading has taken a tumble once again, falling by a whopping 22% in Q2 2025, despite the Bitcoin rally. 😱

After plummeting from $5.3 trillion in Q4 2024 to $4.6 trillion in Q1 2025, the crypto spot trading volumes on major centralized exchanges (CEXs) have plunged even further to $3.6 trillion in Q2, according to the latest report from TokenInsight.

The ongoing slump in the spot market has been attributed to a drop in altcoin trading activity and liquidity in Q2, which contrasts with the resilience shown in the derivatives markets. 📉

“Traders maintained their Q1 preference for high-frequency derivatives trading amid market uncertainty, aiming to hedge risks and leverage volatility,” the TokenInsight research team wrote in their report.

MEXC Spot Trades Surge Despite Overall Slump

While the average daily spot trading volume dropped by 23%, falling from $52 billion in Q1 to $40 billion in Q2, a few exchanges managed to increase their spot trading volumes last quarter. 📈

MEXC, which has rapidly emerged as a major CEX in recent years, recorded the largest gain in the spot trading market among exchanges in Q2, rising by 2.7%. The only other exchange to see spot trading growth was Bitget, with spot volumes edging up around 0.7%.

After two consecutive quarters of declining spot trading volumes, the market is expected to maintain this downward trajectory, according to TokenInsight.

“Due to ongoing economic uncertainty, as well as limited liquidity and weak trading activity in the altcoin spot market, spot trading volume in Q3 2025 is projected to remain subdued, fluctuating between $3 trillion and $3.5 trillion,” the report noted.

Crypto Derivatives Show Resilience

While spot markets on CEXs tumbled in the past quarter, crypto derivatives proved relatively resilient to price volatility. 🌊

In Q2 2025, derivatives trading volume totaled $20.2 trillion – a 3.6% dip from $20.9 trillion in Q1. Despite the modest decline, the figures underscore the ongoing impact of the broader market correction, according to TokenInsight.

“Although market sentiment was briefly lifted in early April by the Federal Reserve’s decision to pause rate hikes, concerns over global economic slowdown and geopolitical tensions continued to dominate investor behavior,” TokenInsight noted.

Bitcoin ETFs Shine as CEX Volumes Decline

In contrast to CEXs’ dynamics in spot and derivative markets, crypto exchange-traded funds (ETFs) experienced remarkable growth in Q2, with major issuers like BlackRock posting a 370% surge in inflows compared to the previous quarter.

BlackRock’s success came amid a broader surge in global crypto exchange-traded products (ETPs), which attracted $17.8 billion in inflows during the first half of 2025. Nearly $15 billion of that total inflow came from BlackRock alone, according to data from CoinShares.

Driven by rising inflows into Bitcoin funds and increasing corporate adoption, Bitcoin’s price rebounded strongly in Q2, surging 25% over the quarter, according to CoinGecko. This marks a sharp reversal from the 12% decline recorded in Q1.

“Exchange tokens remain closely tied to the altcoin market, where trading activity and liquidity declined notably during the quarter, further weakening support for platform tokens,” TokenInsight concluded, adding:

“Looking ahead, the performance of exchange tokens is expected to remain divergent in Q3 2025.” 🔮

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2025-07-16 15:06