🔥 📉 Has de-leveraging been completed? The market truth in FalconX’s report

FalconX’s Q2 report says de-leveraging is basically complete, but spot trading volume has reached its lowest level since Q3 2023, and stablecoin supply has contracted for the first time.
Trading volume is the lifeblood of the market. Spot trading volume fell 25% month-over-month and 42% year-over-year, while futures open interest (OI) dropped from a peak of $122.2 billion to $53.2 billion—not that funds left, but that they changed the way they hold positions. Turnover has fallen to 1.6x, high-frequency speculation has cooled off, and long-term positions are taking the lead. However, long-term positions don’t necessarily mean bullishness—they can also mean getting trapped.
Total stablecoin supply decreased by $7.4 billion to $313.8 billion, the first contraction in several quarters. Combined with the ETF’s Q2 net outflow of $4.9 billion and the full-year cumulative net outflow of $5.4 billion, the departing capital hasn’t returned. “De-leveraging completed” doesn’t equal the start of a bull market; it only marks the end of a round of leverage liquidations.
There are signs that trading volume rebounded in June, but FalconX is betting on the “CLARITY Act” and ETF fund flows. These are external catalysts, not endogenous drivers. The market is waiting for a trigger point—and waiting itself consumes confidence.
The risk is that after de-leveraging is completed, the market becomes more fragile. Without new capital inflows, any negative news could trigger another round of stampedes. Low trading volume means poor liquidity, and large orders are more likely to cause sharp price swings.
$q3 #oi #clarity #defi # stablecoins