Altcoins Take Over Binance as $135B Floods the Crypto Market

TLDR:

• Altcoins reached 65% of Binance trading volume, marking their strongest volume dominance in two years.
• Total2 added roughly $135 billion as capital moved into altcoins during Bitcoin’s nearly 30% rally.
• Bitcoin represented just 21% of Binance volume at the altcoin peak, while Ethereum accounted for 13.6%.
• CryptoQuant data showed trading activity shifting beyond Bitcoin and Ethereum as altcoin liquidity expanded.

Bitcoin’s nearly 30% rally has coincided with a sharp rise in altcoin trading activity and market capitalization. Altcoins added about $135 billion in value, excluding Ethereum, over the same period.

Binance data showed altcoins reaching 65% of trading volume at their peak. The shift pushed Bitcoin and Ethereum into the background as capital rotated across the crypto market.

Altcoin Volume Dominance Reaches Two-Year High on Binance

According to CryptoQuant analyst Darkfost, Bitcoin’s rally triggered a stronger response across the altcoin market.

The analyst tracked the increase through Total2, a market capitalization measure that excludes Ethereum. That index gained approximately $135 billion within a short period.

The move reflected a rapid increase in capital flowing into altcoins as Bitcoin’s price climbed. Altcoins did not simply follow Bitcoin’s advance.

Trading volume showed an even sharper change. Binance became a key venue for measuring the shift.

CryptoQuant noted that Binance accounts for nearly 40% of altcoin trading volume across exchanges. That concentration made its volume distribution particularly relevant during the rally.

At the peak, altcoins represented 65% of total trading volume on Binance. CryptoQuant described that level as the highest altcoin dominance recorded there in two years.

Bitcoin accounted for only 21% of Binance volume at that point. Ethereum represented another 13.6%, according to the data shared by Darkfost.

Altcoin Volume Dominance Signals a Shift in Crypto Market Liquidity

The volume figures arrived after an extended period of lower volatility and subdued trading activity. The latest rally changed that pattern across several parts of the crypto market.

Bitcoin supplied the initial momentum with a maximum gain approaching 30%, according to CryptoQuant’s analysis. However, trading activity later spread more heavily toward altcoins.

The $135 billion increase in Total2 also showed how quickly capital entered the broader market. The figure excluded Ethereum, keeping the focus on other digital assets.

Darkfost linked the divergence between price performance and trading volume to changing liquidity distribution. Altcoins attracted a larger share of activity despite Bitcoin leading the broader rally.

The data does not identify which individual altcoins received the largest inflows. It instead measures the combined expansion of the segment and its growing share of exchange activity.

Consequently, the latest figures show two parallel developments. Bitcoin delivered the initial price surge, while altcoins captured the largest share of Binance trading volume.

CryptoQuant’s data also placed the current activity against a two-year historical range. Altcoin volume dominance had not reached 65% on Binance during that period.

The concentration of trading activity marks a notable change from earlier market conditions. For now, the data shows capital and volume moving beyond Bitcoin and Ethereum into the wider altcoin market.

The post Altcoins Take Over Binance as $135B Floods the Crypto Market appeared first on Blockonomi.