Altcoin trading volume plummeted to its lowest level since FTX's collapse, with 38% of cryptocurrencies nearing all-time lows.

Altcoin trading volume has plummeted to an alarming level. A recent report by CryptoQuant analyst Darkfost indicates that daily Altcoin trading volume on Binance is currently around $7.7 billion, while other major exchanges combined account for approximately $18.8 billion, less than a quarter of the peak.

How dire is this figure? Compare it to the peaks in October and February 2025, when Binance saw daily trading volumes of $40-50 billion, and other platforms reaching as high as $63-91 billion. In just a few months, trading volume has evaporated by 80%.

38% of Altcoin are nearing all-time lows.

More noteworthy is the price position of Altcoin. Currently, 38% of Altcoin are close to their all-time lows, a higher percentage than the 37.8% during the darkest period after the FTX crash. In other words, in terms of price distribution, the current Altcoin market is even worse than after the FTX incident.

Darkfost's assessment of the current environment is straightforward:

The overall environment remains unfavorable for taking risks, with the crypto market bearing the brunt, especially Altcoin.

Binance currently accounts for about 40% of the global Altcoin trading volume, but even as the largest liquidity provider, it is powerless to combat the trend of capital outflow.

Where is the money going? Stocks and commodities.

The shrinking trading volume in the crypto market reflects investors withdrawing money from Altcoin and shifting it towards stocks and commodities.

The combined background factors are not optimistic:

• Escalating geopolitical conflicts in the Middle East are suppressing risk assets due to risk aversion.
• The Federal Reserve has turned hawkish, and expectations for interest rate cuts have been repeatedly postponed.
• Bitcoin's market share continues to climb, with funds concentrated in top-tier assets and not spreading to Altcoin.
• Altcoin continue to underperform Bitcoin, and FOMO (Fear of Missing Out) sentiment has almost disappeared.

This pattern of "Bitcoin rising while Altcoin remain flat" has persisted for some time.

Low trading volume is not necessarily "bad" historically.

Ironically, Darkfost's analysis wasn't entirely bad news. He pointed out that Altcoin trading volume fell below the annual average again on the 30th. Historically, this signal is usually interpreted by the market as a "dollar-cost averaging phase" rather than a time for panic selling.

Historical data also shows that peak trading volume often corresponds to a market's temporary top and a concentrated release of FOMO (Fear of Missing Out). In other words, the riskiest time is when everyone is rushing in. The current quiet period may actually be brewing the next wave of opportunities, but no one knows when that turning point will occur.

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