Crypto leveraged trading activity continued to cool in July 2026, with perpetual futures volume on centralized exchanges (CEXs) dropping to $4 trillion, the lowest level since December 2023. Trading in perpetual contracts had briefly recovered between April and June this year, but major platforms saw volumes retreat across the board in July. Spot market activity also softened over the month: Coinglass data showed global average daily crypto spot volume fell from $17.8 billion to $13.6 billion between July 1 and July 31, a 23.6% decline. Decentralized exchanges (DEXs) also saw weaker perpetual futures activity, with DeFiLlama data showing July volume at $531 billion, the lowest since June 2025 and about 21% below June 2026's $676 billion. Over a longer horizon, DEX perpetual volume has been trending lower since reaching a $1.36 trillion peak in October 2025, while DEX perpetual open interest (total outstanding derivatives positions) fell from a September 2025 high of $19.4 billion to $17.9 billion in July. Market analysts said the drop in perpetual volume points to weaker investor risk appetite and a retreat in leveraged capital, though growth in RWA (real-world asset) categories could become an important driver for the next phase of onchain derivatives markets.