Altcoin trading volume on Binance jumped to as much as 65% of total activity, a level the tokens have not held in two years. The move came as Bitcoin rallied nearly 25% and altcoin market capitalization grew by about $135 billion, a shift CryptoQuant analyst Darkfost ties to a string of pro-crypto remarks from Trump.
Altcoins have taken the lead role in the latest crypto rally, with trading activity and market capitalization surging alongside Bitcoin's sharp move higher. This follows an extended period of low volatility and subdued trading.
Bitcoin gained nearly 25% over the past week, while altcoins amplified the broader move even further. The combined market capitalization of altcoins, measured through Total2 and excluding Ethereum, increased by around $135 billion over the same period, according to CryptoQuant analyst Darkfost.
Binance Volume Hits a Two-Year High
Binance accounts for nearly 40% of altcoin trading volume across exchanges. There, altcoins made up as much as 65% of total volume at their peak, while Bitcoin held just 21% of volume at that point, and Ethereum accounted for 13.6%.
According to Darkfost: "potentially signaling a broader resurgence of risk appetite across the market." He added that altcoins had not held this much of Binance's trading volume in two years, pointing to a clear redistribution of liquidity across the market.
Trump's August 19 Remarks Preceded the Rotation
The shift followed a series of announcements from Trump on August 19, including his call for the US to purchase large amounts of BTC and for Congress to pass the Clarity Act. Darkfost said the announcements helped push liquidity into altcoins.
Breadth Reading Flags a Possible Reset
Altcoin Vector's "Altcoin Impulse" reading jumped to 93%, suggesting the rally has spread across a large part of the market. However, Altcoin Vector considers breadth above 75% overextended, meaning the move could face exhaustion or a reset.
Source: CryptoPotato
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