Analysts from the CryptoQuant platform have recorded a significant decrease in activity in the altcoin market, indicating the end of another phase of rotation in this segment of digital assets. After a period of rising Ethereum prices, traders shifted their focus to other altcoins, but recently there has also been a decline in interest here.
This is reported by Business • Media
Decline in Ethereum’s Dominance and Changes in On-Chain Activity
Experts point out that trading volumes for Ethereum reached peak levels, after which a gradual decline in the market share of this cryptocurrency began. An additional signal was the reduced on-chain activity, particularly the mass withdrawal of Ethereum from exchanges, which typically indicates a decrease in short-term interest in transactions involving this asset.
“Back in June, during the ‘double peak’ phase, one of the main reasons cited for why a major correction was deemed unlikely was the absence of any significant changes in this data,” the experts stated.
Bitcoin Dynamics and the Impact of Monetary Policy
Currently, Bitcoin, the leading cryptocurrency in the market, is showing weak dynamics and remains within a narrow trading range. Despite the potential impact of changes in U.S. monetary policy and possible rate cuts on the market, participants are not observing compelling signals for a trend reversal.
Previously, analysts also noted that the prolonged rotation of altcoins has lasted longer than expected, and clear signs of a transition to a new phase are already noticeable. According to Bloomberg Intelligence expert James Seyffart, even the approval of exchange-traded funds (ETFs) based on altcoins will not serve as a catalyst for the start of a new “alt season.”