Altcoins Dominate Binance Trading Volume at Two-Year High
Altcoins have dominated trading activity on Binance for the first time in two years, capturing a record 65% of trading volume. Bitcoin and Ethereum accounted for 21% and 13.6% respectively, according to an analysis by CryptoQuant. This shift follows a sharp bitcoin advance that drew liquidity back into cryptocurrency markets.
Bitcoin's share of Binance activity has been declining as altcoins generate more trading turnover during the rally. The Commodity Futures Trading Commission (CFTC) has warned about virtual currency spot markets experiencing flash crashes, manipulation, and limited oversight.
The analysis notes that sharp changes in trading concentration can increase exposure to volatility when prices move within short periods. Altcoin market capitalization increased by approximately $135 billion during the same period, forming part of a wider recovery that added about $500 billion to the entire crypto market.