Institutions: The crypto market continued deleveraging in Q2, with spot trading volume hitting its lowest level since Q3 2023.

According to FalconX’s latest market analysis, the crypto market sustained its deleveraging trend in the second quarter of 2026. Spot trading volume on major platforms fell to $1.6 trillion, down 25% quarter-over-quarter and 42% year-over-year, hitting its lowest level since the third quarter of 2023. Futures trading volume dropped to $9 trillion, a 12% quarter-over-quarter and 31% year-over-year decline. The report shows that by the end of Q2, the total open interest (OI) of futures across the market fell to $53.2 billion, a sharp pullback from the peak of $122.2 billion in October 2025, while trading turnover ratio decreased to 1.6x, reflecting a shift in the market from high-frequency speculation to long-term holding. On the capital flow front, Bitcoin spot ETFs recorded a net outflow of $4.9 billion in Q2, expanding the year-to-date cumulative net outflow to $5.4 billion. Total stablecoin supply shrank by $7.4 billion to $313.8 billion, marking the first contraction in recent quarters. FalconX notes that the current market deleveraging process is largely complete, with open interest stabilizing and trading volume showing signs of recovery in June. Looking ahead to the third quarter, the progress of the U.S. CLARITY Act legislation and ETF capital flows will be key catalysts shaping market trends.