Altcoins Dominate Trading Volume as Market Sees $135 Billion Capital Influx
The cryptocurrency market has seen a significant shift in trading activity, with altcoins taking center stage. According to CryptoQuant analyst Darkfost, investor attention and capital have moved strongly toward altcoins, potentially signaling a broader resurgence of risk appetite across the market.
In the past week, Bitcoin gained nearly 25%, while altcoins amplified the broader market trend. The total altcoin market capitalization, excluding Ethereum, increased by around $135 billion during this period. Darkfost noted that the scale of the move highlights how quickly capital has entered the altcoin segment.
A notable change was seen in trading activity on Binance, which represents nearly 40% of altcoin trading volume across exchanges. At its peak, altcoins accounted for as much as 65% of total volume, while Bitcoin made up just 21%, and Ethereum accounted for 13.6%. This marks a significant shift, with altcoins not holding this much of Binance's trading volume in two years.
The analyst attributed the shift to several announcements from Trump on August 19, which helped push liquidity into altcoins. Additionally, the Altcoin Impulse reading jumped to 93%, suggesting that the rally has spread across a large part of the market. However, this also indicates that the move could face exhaustion or a reset.