Encryption CEX spot trading volume hits a nine-month low, with increasing divergence between institutions and retail investors.

According to the latest data from The Block, in June 2025, the spot trading volume of Centralized Exchanges (CEX) fell to $1.07 trillion, a decrease of about 27% from $1.47 trillion in May, marking the lowest level in nine months. This significant decline in trading volume not only reflects the short-term fluctuations of the crypto assets market but also reveals structural changes within the market. Presto Research analyst Min Jung pointed out that although Bitcoin prices remained stable and close to historical highs, the altcoin market, including Ethereum (ETH), performed poorly, with prices down nearly 40% from their peak.

This differentiation indicates that market momentum is primarily driven by institutional investors in Bitcoin trading, while retail participation in altcoins is significantly lacking. This article will delve into the background of the decline in trading volume, focusing on the internal dynamics of the market and looking ahead to future market trends.

June CEX spot trading volume plummets

In June 2025, the volume of CEX spot trading plummeted from $1.47 trillion in May to $1.07 trillion, marking the lowest record since September 2024. As a major trading venue in the crypto assets market, changes in CEX's trading volume often directly reflect market sentiment and participation. This significant decline in trading volume indicates a weakening market activity, which may be influenced by changes in investor behavior, adjustments in market structure, and differentiation of asset classes. In particular, the performance differences between Bitcoin and alts provide important clues for understanding the dynamics within the market.

Market Internal Dynamics: The Divergence of Bitcoin and Altcoins

The internal structure of the cryptocurrency market underwent significant changes in June 2025, with a clear polarization in performance between Bitcoin and alts. As the dominant asset in the market, Bitcoin maintained a relatively stable price, with fluctuations close to its historical highs. This stability is attributed to Bitcoin's market positioning as "digital gold," with its low volatility and broad institutional acceptance making it a safe haven choice for investors. On-chain data shows that Bitcoin's trading volume dominates in CEX, with a market share stabilizing around 55%.

Institutional investors have been continuously increasing their holdings of Bitcoin through methods such as spot ETFs and corporate balance sheet allocations, further solidifying their market position. For example, companies like MicroStrategy continue to increase their Bitcoin holdings through bond financing, while the net inflow of spot ETFs has also provided solid support for Bitcoin prices. This institution-driven capital inflow not only maintains the price stability of Bitcoin but also drives its dominant position in CEX trading volume.

In contrast, the altcoin market has fallen into a slump. Ethereum (ETH), as the second largest crypto asset, has seen its price drop nearly 40% from its historical high, and other major altcoins like Solana (SOL), Cardano (ADA), and Polkadot (DOT) have also failed to escape the sluggish state. On-chain activity further confirms this trend: the transfer volume and active address count on the Ethereum network significantly decreased in June, indicating that user participation and transaction demand are both at a low level. This slump is partly due to the high fluctuation and speculative nature of altcoins.

Unlike Bitcoin, the price trend of alts often depends on the rotation of market hotspots and the catalysts of technological innovation. For example, the DeFi boom and NFT craze in 2021 once drove the prices of Ethereum and related tokens to soar, but the market in June 2025 lacks similar new narratives. Although Layer 2 solutions such as Optimism and Arbitrum have made progress in reducing transaction costs and improving efficiency, these technological advancements have not yet translated into widespread market enthusiasm, resulting in a continuous decline in the volume of alts.

The low participation of retail investors is another key factor in the sluggish altcoin market. Retail investors typically prefer altcoins, seeking high-risk, high-return opportunities. However, data from June 2025 shows that the trading activity of altcoins has significantly decreased, reflecting a wait-and-see attitude among retail investors. Many retail investors suffered losses during the market crash of 2021-2022, and the current price slump and lack of clear investment themes may further weaken their confidence. Additionally, the complexity of the altcoin market may also pose entry barriers. For example, the complicated operational processes of DeFi protocols and the speculative risks of the NFT market may deter ordinary investors. In contrast, the simplicity and widespread recognition of Bitcoin make it more accessible to newcomers, which further exacerbates the sluggishness of the altcoin market.

Another phenomenon worth noting within the market is the shift in trading patterns. In the past, the trading volume of CEX was often dominated by retail-driven short-term speculation and leveraged trading. However, data from June 2025 indicates that the proportion of leveraged trading has declined, while the dominance of spot trading has become more pronounced. This may be related to the trading strategies of institutional investors, who tend to favor long-term holding rather than high-frequency trading. Additionally, the trading volume on decentralized exchanges (DEX) also saw no significant growth in June, indicating that liquidity across the market is contracting. This liquidity contraction may further suppress the trading activity of alts, as the price discovery and market depth of alts heavily rely on an active trading ecosystem.

Differentiation between Institutions and Retail Investors

Comments from Presto Research analyst Min Jung provide an important perspective for understanding market dynamics. She pointed out: "Although Bitcoin remains stable and is not far from its historical high, the altcoin market is struggling, with most alts, including ETH, down nearly 40% from their peaks. This indicates that the market is primarily driven by institutional investors purchasing Bitcoin, while retail participation, which usually favors altcoins, remains relatively sluggish." This analysis accurately captures the core characteristics of the current market: the divergence in investment preferences and market participation between institutions and retail investors.

The ongoing positioning of institutional investors in the Bitcoin market is a key factor driving market stability. The continued inflow of Bitcoin spot ETFs, the increase in corporate adoption, and the improvement of institutional custody solutions have all provided solid financial support for Bitcoin. This institution-driven market logic has made Bitcoin the "stable anchor" in the market, while altcoins have performed poorly due to a lack of similar support. In contrast, the low participation of retail investors has left the altcoin market lacking the necessary momentum. Retail investors' wait-and-see sentiment may stem from multiple factors, including previous investment losses, the lack of market hotspots, and unfamiliarity with complex investment tools. This divergence not only reflects the different motivations of market participants but also indicates that the cryptocurrency market may be entering a more mature phase, with institutional investors' long-term strategies gradually replacing retail investors' short-term speculation.

Insights into the Future Market

The decline in CEX spot trading volume in June and the internal differentiation within the market provide several insights for the future market trend. Firstly, Bitcoin's dominant position may continue to be solidified in the short term. The continuous entry of institutional investors and Bitcoin's safe-haven attributes make it more attractive in uncertain market conditions. However, this may further compress the market space for alts, unless the latter can find new growth points. For example, further upgrades of Ethereum (such as the implementation of sharding technology) or the emergence of new application scenarios (such as Web3 or the metaverse) may inject new vitality into the altcoin market.

Secondly, the recovery of retail participation will be key to the revival of the altcoin market. Lowering investment thresholds, simplifying user experiences, and providing broader educational resources may help attract retail investors back into the market. In addition, new market narratives or technological breakthroughs could reignite retail enthusiasm. For instance, the past waves of DeFi and NFTs have driven rapid price increases in altcoins, and similar new hotspots may reshape the market landscape in the future.

Finally, the recovery of market liquidity will be key to future development. Whether it is a Centralized Exchange (CEX) or a Decentralized Exchange (DEX), the growth of volume requires broader participation and a healthier ecosystem. The current contraction of market liquidity may be a short-term phenomenon, but if it continues, it could have a long-term impact on price discovery and market depth. Investors need to closely monitor on-chain data, volume trends, and changes in the behavior of institutions and retail investors to grasp market direction.

The sharp decline in CEX spot trading volume in June 2025 reflects profound changes within the Crypto Assets market. The stability of Bitcoin sharply contrasts with the stagnation of alts, and the divergence between institutional investors and retail investors further exacerbates this trend. Institution-driven Bitcoin trading provides support for the market, but the low participation of retail investors has left the altcoin market in distress. In the future, the development of the market will depend on technological innovation, a rebound in retail participation, and the recovery of overall liquidity. For investors, understanding these dynamics and adjusting strategies based on market signals will be key to seizing opportunities.

Disclaimer: This article is for market analysis only and does not constitute investment advice. The cryptocurrency market has high volatility and risks, and CoinRank advises investors to make cautious decisions based on thorough research.