According to the latest data from The Block, in June 2025, the spot trading volume of centralized exchanges (CEX) dropped to $1.07 trillion, a decrease of about 27% from $1.47 trillion in May, reaching the lowest level in nine months. This significant trading volume decline not only reflects the short-term volatility of the cryptocurrency market but also reveals structural changes within the market. Min Jung, a research analyst at Presto Research, pointed out that while Bitcoin's price remains stable and close to its historical high, the Altcoin market, including Ethereum (ETH), is performing poorly, with prices dropping nearly 40% from their peak.
This divergence indicates that market momentum is primarily driven by institutional investors' Bitcoin trading, with retail investors showing notably low participation in Altcoins. This article will delve into the background of the trading volume decline, focus on analyzing internal market dynamics, and explore future market trends.
CEX Spot Trading Volume Plummets in June
In June 2025, CEX spot trading volume plummeted from $1.47 trillion in May to $1.07 trillion, marking the lowest record since September 2024. As the primary trading venue for the cryptocurrency market, changes in CEX trading volume often directly reflect market sentiment and participation. This significant trading volume decline suggests that market activity is weakening, potentially influenced by a combination of changes in investor behavior, market structure adjustments, and asset class divergence. Particularly, the performance difference between Bitcoin and Altcoins provides important clues for understanding internal market dynamics.
Internal Market Dynamics: Bitcoin and Altcoin Divergence
The internal structure of the cryptocurrency market underwent significant changes in June 2025, with a clear polarization in the performance of Bitcoin and Altcoins. Bitcoin, as the market's dominant asset, maintained a relatively stable price, with fluctuations close to its historical high. This stability stems from Bitcoin's market positioning as "digital gold," with its low volatility and widespread institutional acceptance making it an investor's hedge of choice. On-chain data shows that Bitcoin's trading volume dominates CEX, with a stable market share of around 55%.
Institutional investors continue to accumulate Bitcoin through spot ETFs and corporate balance sheet allocations, further consolidating its market position. For example, companies like MicroStrategy continue to increase Bitcoin holdings through bond financing, and the net inflows of spot ETFs provide solid support for Bitcoin's price. This institution-driven capital inflow not only maintains Bitcoin's price stability but also drives its dominance in CEX trading volume.
In contrast, the Altcoin market has fallen into a downturn. Ethereum (ETH), as the second-largest cryptocurrency, has seen its price drop nearly 40% from its historical high, with other major Altcoins like Solana (SOL), Cardano (ADA), and Polkadot (DOT) similarly unable to escape the low tide. On-chain activity further confirms this trend: Ethereum network transfer volume and active address numbers significantly decreased in June, indicating low user participation and trading demand. This downturn is partly due to the high volatility and speculative nature of Altcoins.
Unlike Bitcoin, Altcoin price trends often depend on market hot topics and technological innovation catalysts. For example, the DeFi and Non-Fungible Token (NFT) boom in 2021 once drove Ethereum and related token prices to soar, but the June 2025 market lacks similar new narratives. Although Layer 2 solutions like Optimism and Arbitrum have made progress in reducing transaction costs and improving efficiency, these technological advancements have not yet translated into broad market enthusiasm, leading to continued Altcoin trading volume shrinkage.
Retail investors' low participation is another key factor in the Altcoin market's downturn. Retail investors typically prefer Altcoins, seeking high-risk, high-reward opportunities. However, June 2025 data shows a significant decline in Altcoin trading activity, reflecting cautious sentiment. Many retail investors suffered losses during the 2021-2022 market crash, and the current price downturn and lack of clear investment themes may further weaken their confidence. Additionally, the complexity of the Altcoin market may constitute an entry barrier. For instance, the complex operational processes of DeFi protocols and speculative risks in the Non-Fungible Token market might deter ordinary investors. In contrast, Bitcoin's simplicity and widespread recognition make it more accessible to newcomers, further exacerbating the Altcoin market's downturn.
Another noteworthy phenomenon in the market's internal dynamics is the transformation of trading patterns. Previously, CEX trading volume was often dominated by retail-driven short-term speculation and leveraged trading, but June 2025 data shows a decrease in leverage trading proportion, with spot trading further solidifying its dominance. This may be related to institutional investors' trading strategies, who are more inclined to long-term holding rather than high-frequency trading. Moreover, decentralized exchange (DEX) trading volume did not show significant growth in June, indicating that market liquidity is contracting. This liquidity contraction may further suppress Altcoin trading activity, as Altcoin price discovery and market depth highly depend on an active trading ecosystem.
Institutional and Retail Divergence
Comments from Min Jung, a Presto Research analyst, provide an important perspective for understanding market dynamics. She noted: "Although Bitcoin remains stable and not far from its historical high, the Altcoin market is struggling, with most Altcoins, including ETH, still down nearly 40% from their peak. This indicates that the market is primarily driven by institutional investors buying Bitcoin, while retail investors, who typically favor Altcoins, remain relatively inactive." This analysis accurately captures the core characteristics of the current market: the divergence between institutions and retail investors in investment preferences and market participation.
Institutional investors' continued deployment in the Bitcoin market is a key factor driving market stability. Continuous inflows of Bitcoin spot ETFs, increased corporate adoption, and the improvement of institutional custody solutions all provide solid financial support for Bitcoin. This institution-driven market logic makes Bitcoin a "stable anchor" in the market, while Altcoins perform poorly due to lack of similar support. Conversely, retail investors' low participation leaves the Altcoin market lacking necessary momentum. Retail investors' cautious sentiment may stem from multiple factors, including previous investment losses, lack of market hot topics, and unfamiliarity with complex investment tools. This divergence not only reflects different motivations of market participants but also suggests that the cryptocurrency market may be entering a more mature stage, with institutional investors' long-term strategies gradually replacing retail investors' short-term speculation.
Implications for Future Markets
The June CEX spot trading volume decline and internal market divergence provide several insights into future market trends. First, Bitcoin's dominant position may continue to consolidate in the short term. Continuous institutional investor entry and Bitcoin's hedging attributes make it more attractive in uncertain market environments. However, this may further compress Altcoins' market space unless they can find new growth points. For example, Ethereum's further upgrades (such as sharding technology implementation) or the emergence of new application scenarios (like Web3 or metaverse) might inject new vitality into the Altcoin market.
Secondly, the recovery of retail investor participation will be the key to the revival of the Altcoin market. Lowering investment thresholds, simplifying user experience, and providing more extensive educational resources may help attract retail investors back to the market. Moreover, new market narratives or technological breakthroughs could reignite retail investors' enthusiasm. For example, past DeFi and Non-Fungible Token booms once drove rapid increases in Altcoin prices, and similar new hotspots might reshape the market landscape in the future.
Lastly, the restoration of market liquidity will be crucial for future development. Whether on centralized or decentralized exchanges, trading volume growth requires broader participation and a healthier ecosystem. The current market's liquidity contraction might be a short-term phenomenon, but if it persists, it could have long-term impacts on price discovery and market depth. Investors need to closely monitor on-chain data, trading volume trends, and changes in institutional and retail investor behavior to grasp market direction.
The sharp decline in CEX spot trading volume in June 2025 reflects profound changes within the cryptocurrency market. Bitcoin's stability contrasts sharply with Altcoins' sluggishness, and the divergence between institutional and retail investors further intensifies this trend. Institutional-driven Bitcoin trading provides market support, but low retail participation has left the Altcoin market struggling. In the future, market development will depend on technological innovation, the recovery of retail investor participation, and overall liquidity restoration. 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 purposes only and does not constitute investment advice. The cryptocurrency market is highly volatile and risky. CoinRank advises investors to make decisions cautiously based on thorough research.
