The cryptocurrency market extended its slump into the first quarter of 2026, with centralized exchange spot trading volume collapsing 39.1% as total crypto market capitalization shed $622 billion, according to CoinGecko’s latest industry report.
Released on April 16, the Q1 2026 Crypto Industry Report confirmed what traders had suspected through a quarter shaped by bearish momentum and geopolitical stress.
Total crypto market capitalization closed the period at $2.4 trillion, down 20.4% from the previous quarter and roughly 45% below the $4.4 trillion peak recorded in October 2025. Average daily trading volume fell 27.2% to $117.8 billion, reinforcing the picture of fatigued participation across both retail and institutional cohorts.
Spot Trading Volume on CEXes Sinks to $2.7 Trillion
Spot volume across the top 10 centralized exchanges dropped to $2.7 trillion in Q1, a steep fall from recent quarters that underscores how far activity has retreated from last year’s highs. Binance retained its lead, but the broader cohort saw volumes contract alongside weaker price action.
CoinGecko noted that Bitcoin led losses among major assets, falling 22% in the quarter and underperforming traditional equities. The Nasdaq dropped 7.1%, while the S&P 500 declined 4.8%, both marking their worst quarterly returns since 2022.
Geopolitical Shocks Drive Commodity Perpetual Rallies
Global tensions added fresh pressure on risk assets throughout the quarter, the report said, with crude oil emerging as the best-performing major asset after surging 76.9% amid supply shocks. Gold extended its 2025 run with an 8.1% gain.
The commodity rally spilled into crypto derivatives markets. By the end of Q1, open interest on oil perpetual contracts on Hyperliquid peaked at $2.1 billion before hitting a new all-time high of $2.3 billion on April 6.
Three days later, combined daily volumes for WTIOIL and BRENTOIL crossed $4 billion, surpassing Bitcoin’s daily trading volume on Hyperliquid for the first time. TradeXYZ, the largest HIP-3 deployer on Hyperliquid, now accounts for roughly 25.5% of the platform’s total open interest, according to the report.
USDT Supply Shrinks as Stablecoins Lose Ground
In a notable shift, USDT’s supply contracted for the first time since Q2 2022, CoinGecko said, citing reduced demand from offshore traders amid a broader risk-off mood.
Despite the centralized exchange slump, on-chain activity told a more nuanced story. Ethereum briefly overtook Solana in decentralized exchange activity, while Hyperliquid’s commodity perpetuals rose to account for 30% of its total open interest.
The report frames Q1 as a sustained winter for crypto, with March alone recording just $800 billion in centralized exchange volume, the weakest month since November 2023. Whether the trend extends into the second quarter of the year will depend heavily on macro conditions, the path of US regulation, and the pace of institutional re-engagement with digital assets.
