According to the latest updated data, CEX spot trading volume reached a 9-month low in June.
Why Is CEX Volume Declining?
Centralized cryptocurrency exchanges (CEX) recorded $1.07 trillion in spot trading volume in June, the lowest in nine months, according to data.
While CEX monthly spot trading volume fell to its lowest level since September 2024, decentralized exchange (DEX) trading volumes continued to increase.
One analyst suggested that the reason for this decline is that the current crypto cycle is driven by institutional Bitcoin (BTC) investors rather than retail investments, which is affecting CEX volume.
Speaking to The Block, Presto_Research analyst Min Jung said that unlike previous cycles, the last cycle was focused on institutional investors and retail investors, who still generally prefer altcoins like Ethereum (ETH), were not in the market.
At this point, Jung stated that previous bull cycles were mostly retail-focused, and that retail investors still did not come to the market and did not trade due to the weak performance of altcoins, and that this situation negatively affected the CEX volume.
“Bitcoin, which has shaped the last cycle, remains stable and not far from all-time highs.
Despite BTC’s success, the altcoin market is struggling to rally, with most altcoins, including Ethereum (ETH), still around 40% off their highs.
This points to a market largely driven by institutional Bitcoin purchases, while retail participation—which generally favors altcoins—remains relatively subdued.”
“There has been an increase in DEX activity due to the success of platforms like Hyperliquid and the emergence of more DEXs that offer better user experiences,” Jung said regarding the recent increase in DEX volume.
*This is not investment advice.
