Cryptocurrency market cools down: trading volume hits recent lows, mainstream coins diverge in performance

This week’s cryptocurrency market trading volume has significantly declined, with the latest data showing a drop of over 30% from the usual levels, and a considerable decrease of the same magnitude compared to the previous week. As of now, the total market capitalization of cryptocurrencies remains at $2.96 trillion, a slight decrease of 0.7% from earlier, with the weekly average trading volume at $79 billion, down 26% year-over-year, indicating a cooling of market enthusiasm.

Mainstream Coins Trading Activity Varies

Bitcoin’s weekly trading volume is reported at $28.9 billion, a 36% decrease compared to normal levels, with a decline of over one-third, indicating a clear weakening of trading interest in Bitcoin. Ethereum’s weekly trading volume is $14.8 billion, 32% below its historical average, also showing significant trading sluggishness. Additionally, Ethereum network transaction fees have fallen to 0.04 Gwei, in the 4th percentile range, suggesting on-chain activity is relatively low, and user interaction demand is weak.

Three Major Signals in Capital Flows

Regarding funding rates, Bitcoin’s rate increased by 3.7 percentage points to 8.9% over the week, while open interest in futures contracts decreased by $500 million, with the latest scale dropping to $27.3 billion, reflecting increased profit-taking among bulls. Ethereum’s funding rate rose by 3.4% to 6.9%, and futures open interest also decreased by $300 million to $17.7 billion. These signs indicate market participants are adjusting their positions, and risk appetite is cooling.

Market Structure: Bitcoin’s Advantage Remains Steady

Bitcoin’s market share is 58.9%, a slight decrease of 0.1% week-over-week, while Ethereum’s share is 11.9%, also down 0.1%. Amid the overall market’s cautious stance, Bitcoin continues to outperform other cryptocurrencies, and the market confidence in leading assets is becoming increasingly evident.