Cryptocurrency spot trading volume fell by 22% in Q2 2025, dropping from $4.6 trillion in Q1 to $3.6 trillion, according to a report by TokenInsight. The decline is attributed to reduced altcoin trading activity and liquidity. Meanwhile, the derivatives market remained robust as traders favored high-frequency derivatives trading to hedge risks and capitalize on volatility. TokenInsight noted that while the Federal Reserve's decision to pause interest rate hikes in April temporarily lifted market sentiment, ongoing concerns about a global economic slowdown and geopolitical tensions continue to influence investor behavior.