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Altcoin Rally in Doubt Amid Trading Volume Slump: Matrixport

Upbit's trading volume plummets by 75%, casting doubt on the altcoin rally as the market cools and investor focus possibly shifts.
Altcoin Rally in Doubt Amid Trading Volume Slump: Matrixport

Highlights

  • Upbit's trading volume plummets 75%, down to $3.79B from $15B peak.
  • Altcoin market cap remains stable at $750B despite volume drop.
  • BTC and ETH trades make up just 9% of Upbit's diverse altcoin market.

According to a Matrixport report, the altcoins 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 downturn is casting doubt on the ongoing rally of alternative cryptocurrencies.

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Substantial Decrease in Trading Volume

Upbit’s 24-hour trading volume has drastically decreased. Having hit $15 billion on March 5, the volume has fallen by 75% to $3.79 billion. This decrease reflects a considerable change from the positive trend that was recorded in the early part of March.

The period of the low trading volume shows the general cooling of the altcoin market. Earlier, the altcoins space has seen huge interest and investment in events of such as the Ethereum Dencun upgrade and the optimism in the crypto market in anticipation of the Bitcoin halving.

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Altcoins Trading Volume Plummet

The shrink of trading volume also has consequences on the general cryptocurrency market, more specifically on altcoins. In 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 the trading volumes, posing a question about the future market values of the altcoin market, as per the report.

Upbit’s portfolio is quite diverse as it includes 192 cryptocurrencies and 309 trading pairs, which means a broad interest in different altcoins. The recent slump, as a result, might indicate an alteration in investor behavior, which would be a transition from a high-risk, high-reward approach favored by altcoin traders.

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Altered Investment Patterns

Upbit trading pattern analysis shows a peculiar focus among South Korean investors. While in many other platforms, such as Coinbase, trading is dominated by Bitcoin (BTC) and Ethereum (ETH), Upbit’s trading activity is more balanced on multiple altcoins.

Nevertheless, with the current recession, this situation might be changing. Currently, the BTC and ETH trading pairs represent slightly over 9% of the entire 24-hour trading volume of Upbit, and the rest come from the altcoin-fiat trading pairs.

This might be indicative of a change in investors’ approach, possibly in the direction of a more prudent approach in the context of market uncertainty. However, the excitement for altcoins, conditioned on the expectation for unimagined profits, can be no lessened in reversal due to the reconsideration of risk in the current economic and political environment.

Read Also: XRP Ledger (XRPL) AMM Amendment Suffers Major Setback

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Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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