Altcoins
Altcoin rally in doubt amid falling trading volume
According to a report from Matrixport, the altcoin market is facing a tough time, as evidenced by the recent sharp decline in trading volumes on Upflow, South Korea’s largest cryptocurrency exchange. This slowdown casts doubt on the ongoing rally in alternative cryptocurrencies.
Substantial decrease in trading volume
Upbit’s 24-hour trading volume has decreased significantly. After reaching $15 billion on March 5, volume fell 75% to $3.79 billion. This decline reflects a considerable change from the positive trend recorded at the beginning of March.
The period of low trading volume shows the general cooling of the altcoin market. Previously, the altcoin space has seen huge interest and investment in events such as Ethereum. Dencun upgrade and optimism in the crypto market in anticipation of the Bitcoin halving.
Altcoin trading volume falls
The decrease in trading volume also has consequences for the general cryptocurrency market, more specifically altcoins. During the first part of the March surge, the total capitalization of altcoins reached $788 billion, the highest level in two years.
This stabilization is simultaneous with the decrease in transaction volumes, which raises the question of the future values of the altcoin market, according to the report.
Upbit’s portfolio is very diverse as it includes 192 cryptocurrencies and 309 trading pairs, which means broad interest in different altcoins. As a result, the recent crisis could indicate a shift in investor behavior, which would constitute a transition from a high-risk, high-reward approach favored by altcoin traders.
Changed investment models
Upbit trading trend analysis shows significant attention among South Korean investors. While on many other platforms, such as Coinbasetrading is dominated by Bitcoin (BTC) and Ethereum (ETH), Upbit’s trading activity is more balanced across multiple altcoins.
However, with the current recession, this situation could change. Currently, BTC and ETH trading pairs account for just over 9% of Upbit’s total 24-hour trading volume, and the rest comes from altcoin-fiat trading pairs.
This could be a sign of a change in investor approach, possibly towards a more cautious approach amid market uncertainty. However, the enthusiasm generated by altcoinsconditioned by the expectation of unimaginable profits, cannot be diminished due to the reconsideration of risk in the current economic and political environment.
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