Cryptocurrency spot trading volumes surged over 30% in May, led by institutional inflows into Bitcoin and Ethereum ETFs, signalling rising investor confidence across global markets.
Trading Activity Accelerates as Institutional Inflows and Market Optimism Fuel Momentum
The cryptocurrency market witnessed a sharp rise in activity last month, with spot trading volumes increasing by more than 30% in May compared to April. The surge reflects growing investor confidence, fuelled by favourable macroeconomic trends, institutional interest, and technical strength in major digital assets.
CoinDCX reported a 32% jump in spot trading volumes, reaching $492 million in May, up from $374 million the previous month. Co-Founder Sumit Gupta linked the spike to “the increasing policy momentum in key markets and India’s growing participation in the digital asset economy.”
Bitcoin and Ethereum remained at the forefront of trading activity. BTC and ETH were the two most actively traded tokens on CoinDCX in May, recording volumes of $29.5 million and $21.7 million respectively. Moo Deng emerged as a breakout performer with $14.4 million in trading volume.
Piyush Walke, Derivatives Research Analyst at Delta Exchange, noted, “Bitcoin is trading above its anchored VWAPs, reinforcing the prevailing positive market sentiment. Ethereum mirrored Bitcoin’s momentum with a strong upside move. It may encounter minor resistance near $2,720, while $2,560 is likely to act as a support level.”
The bullish sentiment is further supported by substantial inflows into crypto exchange-traded funds. Bitcoin spot ETFs saw net inflows of $386.2 million, while Ethereum ETFs attracted $53 million, reflecting heightened institutional interest.
Sathvik Vishwanath, Co-Founder and CEO of Unocoin, pointed to a combination of macroeconomic developments and renewed retail engagement as the drivers behind the trading spike. “The surge in trading volumes was driven by a convergence of macroeconomic events, institutional participation, and renewed retail engagement,” he said. “This uptick reflects growing investor confidence and market activity across major and midcap digital assets.”
US–China trade optimism and anticipation surrounding inflation data created short-term market volatility, which in turn opened the door to speculative trading opportunities. Assets such as PEPE, SOL, and other meme coins benefited from the surge in retail activity.
“The volume surge confirms bullish sentiment and signals a phase of aggressive positioning ahead of global economic triggers…traders are advised to remain cautious, watching for continuation patterns and potential exit liquidity events,” Vishwanath warned.
The developments mark a significant moment for the crypto market as it gains legitimacy among institutional investors, while retail traders seize the opportunity amid market fluctuations.
