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Altcoin trading volumes slump 80%

ForkLog
Altcoin trading volumes slump 80%

Daily altcoin turnover on Binance has fallen 80% from its peaks, to $7.7bn—signalling waning investor interest, said the analyst Darkfost.

Across other major venues, the figure is about $18.8bn. At the highs in October and February 2025, Binance saw $40bn–$50bn, while other platforms posted $63bn to $91bn. 

According to the expert, previous bursts of activity coincided with the formation of local cycle peaks—classic FOMO phases, when well-prepared investors used the rush of demand as an exit for liquidity.

Binance’s share of overall altcoin trading is estimated at roughly 40%. Nearly every second dollar deployed into coins passes through the exchange. Its dominance, however, has strengthened not through market expansion but amid an overall contraction and capital outflows from alternative venues.

The backdrop remains unfavourable for high‑risk assets, in large part because geopolitical tensions are weighing on trader sentiment.

Even so, historically the most attractive entry points tend to appear when interest is minimal and most investors are apathetic, the analyst concluded.

What is happening in the market? 

Over the past 24 hours bitcoin has risen 1.5% after a drop below $70,000. At the time of writing the leading cryptocurrency trades around $71,200. 

Hourly chart of BTC/USDT on Binance. Source: TradingView. 

Ether is little changed, hovering near $2,200. Other top‑ten altcoins by market capitalisation also showed limited movement: 

Source: CoinGecko. 

A CryptoQuant analyst using the handle Crypto Dan suggested the market has found a floor. He pointed to the realised price and profit/loss metrics. According to him, digital gold now sits slightly above levels typical of past cycle lows. 

“The mood in the market is clear: most have already left, interest has faded. A classic bear market. But now is not the time to give up. It is time to prepare for the next stage of growth,” he wrote. 

Glassnode analysts have already noted early signs of a bullish phase. They say bitcoin has entered a relatively “open” zone between $72,000 and $82,000, where resistance is minimal. This is especially evident on the URPD chart, which shows where coins were accumulated.

Source: Glassnode. 

If the current momentum holds, in the short term the leading cryptocurrency could move more freely within that band, the experts reckon. 

However, they deem a return to profitability a more reliable signal. The share of bitcoins “in profit” has risen to 60%—a level characteristic of the early stages of recovery.

“Sustained growth above 75% would be much more compelling confirmation of early bullish conditions, whereas continued pullbacks from current levels would reinforce the narrative of a recovery within a bear market,” Glassnode noted.

Prospects for growth remain 

The key test for the market is its ability to digest current selling pressure. When bitcoin topped $74,000, short‑term holders began to lock in gains aggressively, realising $18.4m an hour. 

Such behaviour has been seen during previous failed rallies: investors sold into strength, damping the upward momentum.

If bitcoin holds support above $70,000, the chances of a move into the $78,000–$82,000 corridor increase, the analysts stressed. 

Meanwhile, selling by long‑term holders has slowed, noted VanEck. The firm called the trend “a potentially constructive signal” for the market. Selling pressure from miners also remains stable despite falling profitability. 

Bitcoin held on miners’ balances has been falling since autumn 2023. Source: VanEck. 

Earlier, the analyst known as Crypto Patel saw potential for bitcoin to rise to $80,000. He cited large‑scale withdrawals of the cryptocurrency from exchanges to cold wallets.

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