Altcoin Rise Suspicious Amid Trading Volume Collapse
According to the Matrixport report, the altcoin market is facing a challenging period, as evidenced by the recent sharp decline in trading volumes on upbit, South Korea’s largest cryptocurrency exchange. This decline casts doubt on the ongoing rally of alternative cryptocurrencies.
Significant Decrease in Trading Volume
Upbit’s 24-hour trading volume has decreased significantly. Volume, which reached $15 billion on March 5, dropped by 75% to $3.79 billion. This decline reflects a significant change from the positive trend recorded at the beginning of March.
The period of low trading volume indicates that the altcoin market is cooling down overall. Previously, the altcoins space had seen significant interest and investment in events such as Ethereum. Dencun upgrade and optimism in the crypto market in anticipation of the Bitcoin halving.
Altcoin Transaction Volume Dropped
The contraction in trading volume also has consequences for the overall cryptocurrency market, especially altcoins. In the first half of March, the total capital of altcoins reached $788 billion, the highest level in two years.
According to the report, this stability, simultaneously with the decrease in transaction volumes, raises a question mark about the future market values of the altcoin market.
Upbit’s portfolio is quite diverse as it includes 192 cryptocurrencies and 309 trading pairs, which means a wide interest in different altcoins. The recent decline may ultimately signal a change in investor behavior, which could be a shift away from the high-risk, high-reward approach preferred by altcoin investors.
Changing Investment Models
Upbit trading pattern analysis shows a unique focus among South Korean investors. While on many other platforms like CoinbaseBitcoin (BTC) and Ethereum (ETH) dominate trading; Upbit’s trading activity is more balanced across multiple altcoins.
However, with the current recession, this may change. Currently, BTC and ETH trading pairs represent just over 9% of Upbit’s 24-hour trading volume, with the remainder coming from altcoin-fiat trading pairs.
This may be indicative of a shift in investors’ approach, perhaps towards a more cautious approach in the context of market uncertainty. But the excitement altcoinsThis situation, which is tied to the expectation of unimaginable profits, is impossible to reverse due to the re-evaluation of risk in the current economic and political environment.
Also Read: XRP Ledger (XRPL) AMM Change Faces Major Setback
✓ Share:
Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Altcoin #Rise #Suspicious #Trading #Volume #Collapse
