I just checked the trading volume numbers on the major exchanges, and the decline is quite significant. The altcoin spot volume is around $7.7 billion, while just over a year ago it was about $40 billion. If we add up all the major exchanges, we barely reach $18.8 billion compared to the $63 billion before. That's a drop of between 70% and 80%, nothing to scoff at.

The interesting part is understanding why this is happening. First, Bitcoin continues to outperform altcoins, so many traders prefer to stay there. Second, regulatory scrutiny has intensified, and that scares some investors. Third, there is less participation from retail investors than before.

Historically, when the FOMO—fear of missing out on gains—disappears from the market, people stop jumping between Bitcoin and altcoins looking for quick 10x returns. That’s what we’re seeing now. Less FOMO means less volume.

What’s curious is that several analysts say these volume contractions often precede major moves. When almost no one is trading, interesting opportunities sometimes emerge. What FOMO really is, is an indicator of the market cycle: when it disappears, the market is calm, and that could mean something is brewing.

The relationship between low volume and prices remains complicated. Less liquidity generally means more volatility, so caution is advised. But if you understand what FOMO is and how it works in cycles, these quiet periods can be moments to evaluate which altcoins have solid fundamentals versus those that were just hype.