Altcoins lose momentum amid weak market demand

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Altcoins lose momentum

Declining activity and trader behavior

According to CryptoQuant analyst known as DarkFost, altcoin trading volumes on major platforms, including Binance, have fallen to multi-month lows. At present, Binance records around $7.7 billion in daily volume, while other exchanges collectively account for approximately $18.8 billion.

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These figures are significantly lower than in 2025, when trading volumes reached tens of billions. At that time, the market was driven by FOMO, as retail investors rushed in, creating liquidity that more experienced participants used to lock in profits.

In the current market phase, the picture is different: activity has slowed, demand has weakened, and traders have become more cautious. Binance still maintains its leadership, controlling about 40% of the altcoin market.

Capital remains within the market

Despite lower trading volumes, liquidity remains within the crypto ecosystem. Altcoins still account for roughly half of total trading activity, while Bitcoin represents about 27%.

This points to capital rotation: investors are not exiting the market but are instead seeking new opportunities, often shifting into larger, more liquid altcoins. Bitcoin dominance remains around 58.9%, reinforcing its role as a core asset during periods of uncertainty.

The total market capitalization of altcoins (excluding BTC) currently stands at around $983 billion, indicating sustained interest in the segment despite the broader slowdown.

What’s behind the drop in volumes

Historically, spikes in trading volumes have often coincided with local market tops. This was the case in February and October 2025, when Binance recorded volumes of $40–50 billion and the broader market reached up to $90 billion. These periods were marked by strong retail inflows.

The current phase appears more like a pause. Declining activity may signal either continued pressure or preparation for a new cycle, as liquidity has already been redistributed within the market.

For investors, the situation remains mixed: there is no clear capital outflow, but there are also no strong catalysts for growth. In this environment, asset selection and fundamental analysis become more important than the overall market trend.

Additional pressure comes from price action. Earlier reports indicated that around one-third of altcoins are trading near their all-time lows. As of March 2026, roughly 95% of these assets remain below their 200-day moving average — a sign of sustained selling pressure. At the same time, similar conditions in past cycles have often preceded a new phase of market growth.

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