TLDR
- Altcoins captured up to 65% of Binance trading volume, the highest share in two years.
- Bitcoin and ether held volume shares of 21% and 13.6% during the same stretch.
- Altcoin market capitalization rose by about $135 billion.
- The wider crypto market gained roughly $500 billion, reaching near $2.74 trillion.
- The Altcoin Season Index sat at 37, showing the rally has not turned into a full altcoin season.
Altcoins took over trading activity during the latest crypto market rally. Their share of Binance volume reached the highest level seen in two years.
The data comes from an analysis published by Cryptoquant on August 25. It shows how trading turned toward smaller coins as the broader market moved higher.
At the peak of the rally, altcoins made up 65% of Binance trading volume. Bitcoin held 21% and ether held 13.6%.
The shift followed a strong run for bitcoin. The coin crossed $81,000 on August 25 after gaining close to 30% during the rally period.
Bitcoin’s shrinking share of trading activity shows that altcoins produced far more turnover as the rally grew. Traders moved quickly into smaller tokens as prices climbed.
Market Cap Gains
Altcoin market capitalization increased by about $135 billion over the same period. This happened alongside a larger recovery across the whole crypto market.
The total crypto market added close to $500 billion. That brought its combined value to nearly $2.74 trillion during the third week of August.
Some altcoins gained close to 100% during the rally. Ether rose 31.2% over seven days.
Many tokens still remained far below their previous record prices. Short-term gains did not erase earlier losses for most assets.
Altcoins cover a wide range of tokens outside of bitcoin. This includes stablecoins, utility tokens, governance tokens, privacy coins, and memecoins.
Smaller coins can see sharper price and volume swings than bitcoin. Liquidity, ownership, and use cases vary widely between them.
Volume Surge Falls Short of Confirming Altcoin Season
High trading volume shows more market activity, but it does not prove new money entered the market. Market cap can rise simply because prices go up.
Volume measures how much value changed hands. It does not confirm that funds moved directly from bitcoin into altcoins.
A separate market tracker backs this up. The Blockchaincenter Altcoin Season Index stood at 37 on August 26.
That index needs 75% of the top 50 coins to outperform bitcoin over 90 days before conditions count as an altcoin season. The current reading falls well short of that mark.
This latest volume jump stands in contrast to Cryptoquant’s outlook from two months earlier. That report found bitcoin-to-altcoin rotation had mostly disappeared, with volume tied to BTC pairs at its lowest point since 2021.
Regulators have flagged risks tied to fast-moving crypto markets. The Commodity Futures Trading Commission has warned that virtual currency spot markets can see flash crashes, limited oversight, and weak customer protections.
The Securities and Exchange Commission’s investor education office has also flagged risks tied to certain crypto asset securities. These include volatility, illiquidity, and concentrated ownership among holders.
As of August 26, the Altcoin Season Index remained at 37, confirming the current rally has not yet met the threshold for a full altcoin season.
The post Altcoin Trading Volume Hits Two-Year High as Market Cap Gains $135 Billion appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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