Highlights
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.
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.
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.
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
Michael Saylor hinted that Strategy would not be making its routine Bitcoin purchase this week.…
Crypto experts have begun to make bullish projections for Pudgy Penguins’ native token, PENGU. This…
ASTER has announced that the roadmap for its second airdrop phase is set to begin…
El Salvador is now sitting on $482 million in unrealized gains in its Bitcoin holdings.…
The Bitcoin price has hit a new all-time high, after staging a monstrous rally since…
Bitcoin (BTC) is in profit on almost all of its supply, leading to discussion by…