Altcoin trading volumes plunge as risk appetite wanes

Altcoin trading volumes have plunged 70%–85% from 2024–2025 highs. Binance leads with $7.7B, others at $18.8B. Investors shift to Bitcoin and stablecoins amid weak sentiment.

Altcoin trading volumes on major cryptocurrency exchanges have dropped to multi-month lows. Binance currently reports about $7.7 billion in daily volume, while other leading exchanges contribute around $18.8 billion. This marks a steep decline of 70% to 85% from the highs of late 2024 and early 2025, when Binance alone reached $50 billion and total exchange volumes surpassed $90 billion in a single day. The downturn is largely attributed to a persistent bear market, tighter monetary policy, and ongoing geopolitical tensions. These factors have reduced risk appetite and shifted investor focus toward Bitcoin and stablecoins, leaving altcoins underperforming Bitcoin by a significant margin. Market sentiment remains cautious, as reflected in the altcoin season index at a neutral 49 points. Capital rotation within the crypto sector is evident, with some traders moving funds into DeFi, stablecoins, or emerging narratives like AI projects. Despite the overall decline, Binance maintains its dominance, accounting for roughly 40% of total altcoin trading volume.