Crypto Perpetual Futures Volumes Plunge on CEXs and DEXs in July

The cryptocurrency derivatives market experienced a significant contraction in July, with trading volumes on both centralized and decentralized exchanges falling to multi-month lows. According to data from Cointelegraph, centralized exchanges recorded $4 trillion in perpetual futures volume for the month, the lowest level since December 2023. Meanwhile, decentralized exchanges saw $531 billion in perpetual futures volume, marking the lowest figure since June 2025.

Volume Decline Across Major Exchanges

The decline comes after a brief recovery period between April and June, when futures activity had shown signs of resilience. However, July saw a broad downturn across major platforms, reflecting a cooling appetite for leveraged trading. The slowdown was not confined to derivatives; spot trading also weakened considerably. Coinglass data reveals that global average daily spot crypto trading volume fell by 23.6% between July 1 and July 31, dropping from $17.8 billion to $13.6 billion.

DeFi and DEX Futures Also Hit

Decentralized exchanges, which had been gaining traction, were not immune to the downturn. DeFiLlama data shows that July DEX perpetual futures volume was approximately $531 billion, down about 21% from June’s $676 billion. This decline suggests that the broader market sentiment has turned cautious, affecting both centralized and decentralized trading venues alike.

Market Implications and Context

The reduction in trading volumes indicates a period of consolidation and reduced speculative activity in the crypto market. This trend may be influenced by a variety of factors, including macroeconomic uncertainties, regulatory developments, and a general risk-off sentiment among traders. For investors, the lower volumes could lead to reduced liquidity and potentially higher volatility, making it crucial to monitor market conditions closely.

Conclusion

July’s sharp drop in perpetual futures volumes on both CEXs and DEXs, coupled with weakening spot trading, underscores a significant cooling in the crypto market. While the data points to a cautious phase, it also highlights the cyclical nature of trading activity. Market participants will be watching closely to see if this trend persists or if volumes rebound in the coming months.

FAQs

Q1: What are perpetual futures contracts?
Perpetual futures are derivative contracts that allow traders to speculate on the price of an asset without an expiry date. They are popular in crypto due to their high leverage and continuous trading.

Q2: Why did trading volumes fall in July?
The decline is attributed to a combination of factors, including reduced speculative interest, macroeconomic headwinds, and regulatory concerns, which led to a broader risk-off sentiment among traders.

Q3: How does lower trading volume affect the market?
Lower volume can lead to reduced liquidity, wider spreads, and potentially higher volatility, making it more challenging for traders to execute large orders without impacting prices.