The Power of Altcoins on Binance: Where is the Market Heading?

Recently, a noteworthy change has been occurring in the crypto market. 60% of the total trading volume on Binance is now taking place in altcoins. This indicates that investors' interest is rapidly shifting towards altcoins.

According to data shared by a CryptoQuant analyst, the share of altcoins in total trading volume has reached a record high of 60% for the year. Meanwhile, the volume for Bitcoin (BTC) and Ethereum (ETH) has declined to about 20%. This trend clearly shows that trading activity is moving away from major cryptocurrencies.

Experts point out that this trend reflects investors' shift towards the more risk-prone altcoin market in order to take advantage of the increasing price fluctuations in recent times. Historically, when altcoin volumes rise, the market becomes more speculative. Currently, both Bitcoin prices and sharp fluctuations in many altcoin prices are highlighting investors' pursuit of short-term gains.

When evaluated together, the decrease in volume for majors and the expansion of volume in altcoins suggest that the risk appetite in the market is regaining strength. This concentration on Binance has the potential to make short-term price movements more volatile. The fact that altcoins have reached a 60% share in total volume indicates that the market has recently refocused on high-risk assets. While this situation offers short-term opportunities to investors, it also increases the risk of extreme price volatility.

The CryptoQuant analyst emphasizes that the retreat of major cryptocurrencies in trading volume provides more room for movement for altcoins, but it is important for investors to remain cautious during this period. The dominance of altcoins on Binance stands out as a significant development that investors should pay attention to.