Report Paints Picture of Q2 Crypto Decline

In its Q2 Crypto Market Review, FalconX paints a picture of declining volumes across the space, however it also sees stabilisation ahead of a possible rebound later in the year.

The headline numbers from the report are that crypto spot volumes decline 42% year-on-year, while futures volumes fell 31%. Crypto futures open interest drifted from $56 billion to $53 billion over the quarter, holding near the deleveraged levels reached in the first quarter of this year.

It also finds that spot volumes declined to a multi-year low, but that the trajectory improved within the quarter, notably with June volumes rising 7% versus April (after bottoming in May). FalconX says this may suggest the activity reset may be stabilising, however it also points out that the increase in volumes may simply reflect short-term event volatility.

The decline in spot volumes across the exchanges, which the report puts at 25% from Q1 and, as noted, 42% from Q2 2025, is the lowest since Q3 2023. Compared to the cycle high in October 2025, volumes are down 61%. Futures volumes were the softest since Q4 2023 and down 12% from Q1.

The report focuses in on the big picture “reset” in crypto markets, observing they are continuing in option products, where volatility remains compressed. In spite of the widespread deleveraging that has driven values lower, the report also notes that the call/put open interest ratio increased over the quarter, suggesting traders may be positioning for a potential bounce in bitcoin.

The report also observes a decline in stablecoin supply, citing a report from Artemis, it states that the “prolonged contraction”, which has occurred for the first time in several quarters, saw supply slip from $321.2 billion on March 31 to $313.8 billion on June 30, a decline of $7.4 billion, or 2.3%. Supply peaked at $326.39 billion on April 17 before drifting lower through the rest of the quarter.

The report concludes by noting that the positioning data suggests a market that has substantially deleveraged and, in Q2, “largely stopped bleeding”. It adds that open interest held near its reset lows, turnover stayed subdued, and spot volumes turned up within the quarter after bottoming in May.

“While the summer period historically tends to be quieter in crypto, the next few weeks could deliver major catalysts, such as a Senate vote on the Clarity act, and any improvement in ETF flows could bridge the market to a more seasonally supportive Q4,” it states. “The tight Senate calendar ahead of the August recess continues to pressure odds of the act passing this year.”