- Altcoin trade volumes have yet to reach previous bullish market levels.
- Altcoin trade volume is currently one-third of Q1 2023 value.
- Bitcoin’s volume dominance has decreased from 45% to 27% since the beginning of the year.
Kaiko, a prominent market data provider and research platform, has recently published its latest assessment on the prospects of altcoins. As per their analysis, the altcoin trade volumes metric has yet to reach the levels witnessed during previous bullish market cycles, indicating that there is still considerable room for growth in this sector.
In a video presentation, Clara Medalie, the research director at Kaiko, recently highlighted a notable decline in altcoin trade volume. Based on the data presented, Medalie pointed out that the current trade volume of altcoins is approximately one-third of the value recorded in Q1, 2023. She further explained that the altcoin trade volume reached its lowest point in recent years but experienced a slight increase following the Ripple ruling, resulting in price surges for select altcoins.
Despite experiencing a notable decline in altcoin trade volume compared to the peak levels in 2021, Medalie astutely notes that it remains superior to its value in 2019. Nevertheless, she anticipates a further dampening this volume in the forthcoming months, aligning with historical patterns and trends.
Medalie explored an innovative approach to analyzing short-term market trends by examining the ratio between Bitcoin and altcoin trade volumes. Her observations revealed a consistent decline in this metric over the recent months. Based on her expertise, she noted that historical data has often associated such a scenario with anticipating a mini bull run in the crypto industry.
According to the research analyst, this outcome can be attributed to altcoins generating significant returns during a bullish market. This indicates a movement of funds between the altcoin and Bitcoin markets. Recent data from Kaiko reveals that Bitcoin’s volume dominance has decreased from 45% to approximately 27% since the beginning of the year, as observed during the analysis. The most significant shift occurred in the weeks following the court’s decision on Ripple’s case on July 13, 2023.
