Altcoins Now Account for Half of Binance's Trading Volume: Liquidity Exits Bitcoin and Ethereum

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Recently, altcoins' share of trading volume on Binance, the world's largest virtual asset exchange, has surpassed that of major cryptocurrencies for the first time, exceeding half. This indicates strong signs of revival in the altcoin market, which has been in a prolonged slump.

According to the cryptocurrency media outlet Bitcoinist on April 23 (local time), top analyst Darkfost stated that altcoins now account for 51% of Binance's total trading volume, marking the first time they have held a majority market share this cycle. This is a remarkable turnaround, surging 20 percentage points in just six weeks, compared to early March when altcoins' trading volume share was only 31% when market uncertainty was at its peak and investors flocked only to major cryptocurrencies.

This explosive increase in altcoin trading volume has inevitably led to a liquidity outflow from major cryptocurrencies. Bitcoin (BTC)'s trading volume share on Binance has fallen to 30%, and Ethereum (ETH)'s decline in share is even more painful. Just two weeks ago, on April 11, Ethereum accounted for 27% of total trades, but it quickly lost 10 percentage points, now dropping to 17%, clearly feeling the market's strong capital rotation.

Experts analyze that even with persistent macroeconomic uncertainty, investors are actively reallocating capital to high-risk, high-reward altcoins that were significantly undervalued during the correction period, rather than merely observing the sideways market. This signifies the beginning of proactive position building, aiming for a full-fledged altcoin bull market (Altseason), beyond just reducing exposure to major cryptocurrencies.

The total altcoin market size, excluding the top 10 cryptocurrencies by market capitalization, is also bottoming out in the $180 billion to $190 billion range after a long correction tunnel. In particular, the market's recovery of the 200-week moving average as a provisional support level is interpreted as a positive sign that long-term investors' buying interest is returning.

However, there are still many hurdles to overcome before discussing a true bull run. This is because the 50-week and 100-week moving averages are converging above the current price level, forming strong resistance. Analysts predict that the altcoin market can only declare a complete trend reversal once it definitively breaks through the $220 billion to $250 billion range, and until then, it will undergo a cautious recovery phase rather than a firm entry into a bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*