Altcoin Market Sees 73% Volume Contraction, Can Demand Recover?

The altcoin market has been hit hard by a sharp decline in trading volume, with figures dropping from $100 billion to $26.5 billion. This contraction in activity is not limited to one or two exchanges, but rather a broad-based weakness across all venues.

Binance processed approximately $7.7 billion in trades during this period, while other exchanges handled around $18.8 billion. In relative terms, Binance's share of the market has risen to nearly 40%, as overall participation shrinks.

Earlier peaks in February and October saw volumes surge to $40–50 billion on Binance and up to $91 billion elsewhere, marking periods of strong demand. However, with volumes falling across all venues, participation is weakening, pointing to reduced risk appetite.