CEX Spot Trading Volume Hits Nine-Month Low, Institutional and Retail Divide Intensifies

CEX spot trading volume hit a nine-month low in June 2025, dropping 27% amid declining retail activity and weak altcoin performance.

Bitcoin’s stability is driven by institutional accumulation, while altcoins struggle with low retail engagement and lack of compelling narratives.

Market trends show a shift toward long-term institutional strategies, with retail speculation and altcoin liquidity continuing to decline.

According to the latest data from The Block, spot trading volume on centralized exchanges (CEX) dropped to $1.07 trillion in June 2025, a 27% decline from May’s $1.47 trillion, marking the lowest level in nine months.

This significant drop in trading volume not only reflects short-term volatility in the cryptocurrency market but also reveals structural changes within the market.

Presto Research analyst Min Jung noted that despite Bitcoin’s price remaining stable and near its all-time high, the altcoin market, including Ethereum (ETH), has underperformed, with prices down nearly 40% from their peaks.

This divergence indicates that market momentum is primarily driven by institutional investors trading Bitcoin, while retail participation in altcoins remains notably weak.

This article will delve into the context of the trading volume decline, analyze internal market dynamics, and provide insights into future market trends.

JUNE CEX SPOT TRADING VOLUME PLUMMETS: MARKET CONTEXT

In June 2025, CEX spot trading volume fell sharply from $1.47 trillion in May to $1.07 trillion, the lowest since September 2024. As the primary trading venues for cryptocurrencies, CEX trading volume is a direct reflection of market sentiment and participation.

This significant decline suggests a weakening of market activity, potentially driven by changes in investor behavior, market structure adjustments, and divergence among asset classes.

Notably, the performance gap between Bitcoin and altcoins provides critical insights into the market’s internal dynamics.

MARKET DYNAMICS: BITCOIN VS. ALTCOIN DIVERGENCE

The cryptocurrency market’s internal structure underwent significant changes in June 2025, with a clear divergence in performance between Bitcoin and altcoins. Bitcoin, as the dominant asset, maintained relative price stability, fluctuating near its historical highs.

This stability stems from Bitcoin’s positioning as “digital gold,” characterized by low volatility and broad institutional acceptance, making it a safe-haven choice for investors.

On-chain data shows that Bitcoin accounted for approximately 55% of CEX trading volume, maintaining its dominant market share.

Institutional investors have continued to accumulate Bitcoin through spot ETFs and corporate balance sheet allocations, further solidifying its market position.

For instance, companies like MicroStrategy have continued to increase 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.

In contrast, the altcoin market has been mired in underperformance.

Ethereum (ETH), the second-largest cryptocurrency, saw its price drop nearly 40% from its all-time high, with other major altcoins like Solana (SOL), Cardano (ADA), and Polkadot (DOT) 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.

Unlike Bitcoin, altcoin price movements often rely on market rotation and catalysts from technological innovation.

For example, the DeFi and NFT booms in 2021 drove sharp price increases for Ethereum and related tokens, but June 2025 lacked similar compelling narratives.

While Layer 2 solutions like Optimism and Arbitrum have made progress in reducing transaction costs and improving efficiency, these advancements

have yet to translate into widespread market enthusiasm, resulting in continued contraction in altcoin trading volume.

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.

INSTITUTIONAL VS. RETAIL DIVIDE: MIN JUNG’S INSIGHTS

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.

IMPLICATIONS FOR THE FUTURE MARKET

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 (such as sharding) or the emergence of new use cases (e.g., Web3 or the metaverse) 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. For instance, the DeFi and NFT booms of the past drove rapid altcoin price increases, and similar catalysts could reshape the market in the future.

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.

The sharp decline in CEX spot trading volume in June 2025 reflects profound changes within the cryptocurrency market. Bitcoin’s stability contrasts starkly with the altcoin market’s struggles, with the institutional-retail divide further amplifying this trend.

Institution-driven Bitcoin trading has provided market support, but low retail participation has left altcoins languishing. Moving forward, market development will hinge on technological innovation, a revival in retail participation, and the restoration of overall liquidity.

For investors, understanding these dynamics and adapting strategies based on market signals will be key to seizing opportunities.

Disclaimer: This article is for market analysis purposes only and does not constitute investment advice. The cryptocurrency market is highly volatile and risky, and investors should make decisions cautiously based on thorough research.

〈CEX Spot Trading Volume Hits Nine-Month Low, Institutional and Retail Divide Intensifies〉這篇文章最早發佈於《CoinRank》。