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Why did altcoins suddenly capture 50% of the total crypto trading volume?
Source: Yellow Original Title: Why Did Altcoins Suddenly Capture 50% of All Crypto Trading Volume?
Original Link: Altcoins captured more than 50% of the total cryptocurrency trading volume as of January 10, surpassing the combined share of 50% for Bitcoin (BTC) and Ethereum (ETH).
Bitcoin accounts for 27% of trading activity, while Ethereum accounts for 23%.
This shift marks the first time in months that alternative cryptocurrencies dominate trading flow.
What happened
Capital rotation accelerated as Bitcoin consolidated in the $89,000 to $94,000 range.
Traders sought higher beta tokens, including Polygon, which rose 52% weekly after launching its Open Money Stack.
Solana (SOL) memecoins attracted speculative interest, with BONK rising 28%.
BNB increased 3.4% over seven days amid expanding operations in Asia.
Bitcoin’s dominance remains at 58.51% by market capitalization.
The Altcoin Season Index rebounded from December lows.
Ethereum maintained a daily volume of $15.2 billion but faced ETF withdrawals of $93.82 million on January 9.
Why it matters
Changes in volume often precede phases of capital rotation in crypto cycles.
Historical patterns show that altcoins gain dominance in trading volume during Bitcoin consolidation periods.
Ethereum’s liquidity anchors altcoin markets, but declining ETF flows indicate profit-taking.
The divergence between trading volume and market cap dominance suggests short-term speculation rather than fundamental changes.
Institutional flows remain concentrated in Bitcoin and Ethereum through regulated products.
Volume concentration in DeFi aggregators, memecoins, and infrastructure tokens reflects sector-specific narratives.
Whether current patterns signal a sustained altseason depends on Bitcoin breaking out of its range.