The cryptocurrency market showed early signs of recovery in Q2 2025, driven largely by renewed interest in spot Bitcoin exchange-traded funds (ETFs) and a sharp price rally in Bitcoin itself.
According to TokenInsight’s latest Exchange Report, total crypto market capitalization climbed to $3.46 trillion by quarter-end, up 28.2% from Q1.
However, exchange activity failed to keep pace with the broader recovery, as cautious sentiment, limited altcoin participation, and macroeconomic headwinds dragged down trading volumes.
Trading Volume Down Despite Bitcoin Surge
TokenInsight reports that the total trading volume across the top 10 crypto exchanges reached $21.6 trillion in Q2, a 6.16% decline from the previous quarter.
While Bitcoin rallied from $83,000 to over $111,000 before closing near $106,000, the rest of the market saw uneven performance.
Liquidity remained concentrated in a few large-cap assets, with many altcoins continuing to see low activity and sharp drops in interest.
The spot market, in particular, experienced a marked pullback: average daily spot trading volume declined from $51 billion in Q1 to $40 billion in Q2. Total spot volume across major exchanges reached $3.63 trillion, a 21.7% drop quarter-on-quarter.
Derivatives trading fared slightly better, reaching $20.2 trillion, down 3.6% from Q1. This segment remained more resilient as traders sought to hedge volatility and manage risk amid ongoing geopolitical tensions and sluggish global growth.
The average daily derivatives trading volume fell to $226 billion, compared to $233 billion in Q1, reflecting broader market caution.
Binance retains its lead in total trading volume with a 35.39% share, though this reflected a slight decrease from Q1. Other exchanges gained ground: OKX, Bitget, HTX, Gate, and KuCoin all expanded their market shares during the quarter. Gate posted the largest gain with a 2.55% increase, followed by OKX with 1.08%.
In the open interest market, Binance strengthened its position with a 0.36% increase, reaching a 23.83% share. Bitget, OKX, and HTX also made modest gains.
The data shows a gradual diversification in user behavior, as smaller platforms continue to attract more trading volume despite the broader slowdown in market activity.
Exchange Tokens Lag Behind Bitcoin Rally
While Bitcoin surged 31.62% during Q2, exchange-related tokens underperformed. BNB led the pack with an 8.91% gain, followed by modest increases in OKB, BGB, and KCS.
Most other exchange tokens posted declines, reflecting waning interest in altcoin markets. As TokenInsight notes, exchange tokens remain closely correlated with altcoin activity, which saw reduced liquidity and volume during the quarter.
With persistent macro uncertainty and uneven regulatory developments, Q3 is expected to remain challenging for exchange token performance.
TokenInsight anticipates continued divergence in this segment as market participants focus on high-cap assets and remain selective in deploying capital across the exchange sector.
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