On-chain data shows the Bitcoin trading volume has been rising while interest around the altcoins has continued to be low recently.
Bitcoin Trading Volume Recently Crossed Above The $30 Billion Mark
According to data from the on-chain analytics firm Santiment, altcoins are now drawing lower and lower interest as BTC’s price dominance strengthens. The “trading volume” is an indicator that measures the daily total amount of a cryptocurrency (in USD) that’s being transacted on the blockchain.
When the value of this metric is high, it means a large number of tokens of the asset in question are being moved around on the network right now. Such a trend suggests that traders are active in the market currently.
On the other hand, low values of the indicator suggest the cryptocurrency isn’t seeing much activity on the blockchain at the moment. This can be a sign that the general interest in the asset is low among investors.
Now, here is a chart that shows the trend in the trading volume of the top 10 cryptocurrencies by market cap (excluding the stablecoins) over the last few months:
Looks like the value of the metric has been quite high in recent days | Source: Santiment on Twitter
As displayed in the above graph, the Bitcoin trading volume has sharply surged recently as the price of the cryptocurrency has observed some pretty high volatility.
This kind of trend is nothing out of the ordinary, as high bursts of volatility can bring a lot of attention to the asset since investors generally find such events to be exciting. New traders naturally get drawn to the blockchain during these periods, and old ones also react to the price action by repositioning themselves.
As the latest high volatility event was quite violent, the trading volume levels touched during it have been significantly higher than those observed during the past month. At its recent peak, the indicator broke above the $30 billion mark, which is the highest it has been since March 22, 2023.
From the chart, it’s visible that Ethereum’s trading volume also saw a boost during this period, but the rise hasn’t been quite as significant as what Bitcoin has observed.
The altcoin trading volume in general has remained at pretty low levels despite the recent volatility, suggesting that investors are mostly focusing on BTC right now.
The reason behind this low altcoin interest is likely to be the fact that the BTC price has displayed strength recently, as it has outperformed all the coins on this list during the last seven days.
The volatility experienced by the number 1 cryptocurrency has also been higher in general than what the altcoins have experienced, further explaining why holders may be paying more attention to it.
At the time of writing, Bitcoin is trading around $29,200, up 4% in the last week.
BTC has displayed high volatility in the last few days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net