The decline in altcoin trading volume indicates weak market demand.
Meanwhile, Binance, the world's largest cryptocurrency exchange, currently has a daily trading volume of about $7.7 billion, with other exchanges collectively nearing $18.8 billion.
These figures are significantly lower than the peaks seen in early 2025, highlighting a marked slowdown in market participation. This downward trend suggests that traders are becoming increasingly cautious in an environment of limited risk appetite.
Despite the drop in trading volume, Binance continues to dominate the market. The exchange currently controls about 40% of the total altcoin trading volume, meaning that nearly one in every two trades is conducted on its platform.
Capital flows indicate that liquidity has not completely exited the crypto market.
Despite the decline in trading volume, funds have not entirely left the crypto market but are being redistributed within the ecosystem. Altcoins now account for nearly 50% of total crypto trading volume, surpassing Bitcoin's approximately 27% share.
Currently, the total market capitalization of altcoins, excluding Bitcoin, is about $983.3 billion.
Looking back, major spikes in altcoin trading volume occurred in February and October 2025. During these periods, Binance's trading volume ranged between $40 billion and $50 billion, while other exchanges peaked at up to $91 billion.
These peaks typically occur when the market forms local highs. Increased activity during such phases is often driven by FOMO (fear of missing out), with retail investors rushing in, allowing experienced traders to opt out.
Despite the current weak market conditions, the prices of Bitcoin and other major cryptocurrencies have fallen nearly 40% to 70% from their peaks.