On-chain data shows the altcoin volume saw an explosion following Bitcoin’s recent high and Binance accounted for the largest part of it.
Binance Altcoin Spot Trading Volume Saw A Significant Jump Recently
In a dashboard release, on-chain analytics firm CryptoQuant has talked about how spot trading volume in the cryptocurrency sector changed following BTC’s all-time high (ATH).
Spot trading volume here naturally refers to the total amount of a given asset or group of assets that’s becoming involved in trading activities on the centralized spot exchanges.
First, here is a chart that shows the trend in the metric for Bitcoin:
How the BTC spot trading volume has changed on Binance and other exchanges | Source: CryptoQuant
As displayed in the above graph, the Bitcoin spot trading volume observed a huge increase as the asset’s price set its ATH, indicating that traders ramped up their activity.
Volume grew proportionally between Binance and the rest of the exchanges during this uptick in activity, but a shift followed in the days after the ATH: volume dropped on the other exchanges while it held up relatively well on Binance. This meant that the dominance of the platform rose.
“Binance’s share of spot trading volume grew from 39% the previous day to the all-time high, to 48% the next day of the all-time high,” notes CryptoQuant. The platform’s dominance has remained strong since, though overall volume has declined on both it and the rest of the platforms.
While BTC spot trading volume may have cooled off, the other side of the cryptocurrency sector, made up of the altcoins, has thrived.
Looks like volume related to the altcoins has spiked in recent days | Source: CryptoQuant
As is visible in the chart, the altcoin spot trading volume also jumped across Binance and the rest of the platforms when BTC set its ATH, but unlike the number one digital asset, the alts didn’t follow up with a notable decline in activity.
This trend has accompanied a divergence between the prices of BTC and the others. Assets like Ethereum (ETH), XRP (XRP), and Dogecoin (DOGE) have shot up, while Bitcoin has moved sideways.
Just like in the case of BTC, Binance witnessed its altcoin spot trading volume grow in the days after the price ATH. “Binance dominated Altcoin spot trading volumes the days after BTC reached its all-time high, with the exchange’s share standing as high as 49% on July 18,” says the analytics firm.
Bitcoin Price
Bitcoin has shown no signs of a move in either direction as its price is still trading around the $118,000 mark.
The price of the coin seems to have been locked in sideways movement recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
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