Crypto trading volumes fall to 2-year low as market fatigue sets in

The low trading volume reflects the reluctance of market participants to make aggressive bets in either direction at present.

New data from on-chain analytics firm Santiment shows that trading activity on crypto’s largest non-stable assets has fallen to levels not seen since 2024.

According to the company, the slowdown indicates a market in which traders have largely retreated, a situation that has often occurred before relief returns when confidence eventually returns.

Crypto traders retreat as volumes dry up

Santiment’s analysis, shared on

“Traders appear reluctant to buy or sell aggressively as macroeconomic uncertainty, geopolitical tensions, and recent selloffs keep participants on the sidelines,” the firm wrote.

While low activity may appear bearish, Santiment noted that periods of low participation historically occur just before some of crypto’s strongest rallies. The company said markets rarely reverse higher when investors are actively chasing prices and inflection points often occur when traders disengage and expect little movement.

Data from CoinGecko supported Santiment’s approach to transaction flow, which found Bitcoin’s 24-hour trading volume was around $30 billion, down almost 20% from the previous day. Ethereum’s, however, was much more modest, at 1.40%, while Tron (TRX) and BNB saw activity decline by 4% and 10%, respectively.

Nevertheless, some altcoins saw an increase, with Solana (SOL), for example, seeing its 24-hour trading volume increase by 23%, while that of Ripple’s XRP increased by 11%.

Santiment says this type of market situation, where capital sits idly by despite continued development and institutional involvement in the industry, is more like a situation of looking for a new reason to act.

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“If confidence begins to return, a small amount of capital inflows could be enough to trigger a much-needed recovery as marginalized capital re-enters the sector,” was their verdict.

On-chain signals don’t help

The lack of crypto investor participation is not happening in a vacuum, given that the on-chain environment has become more challenging in recent times.

For example, data released earlier this week by CryptoQuant contributor Axel Adler Jr. showed that BTC’s 30-day realized cap change fell to -1.1%, the largest level of capital outflows since mid-March, with around $12 billion flowing out of the network since a high point in May.

Meanwhile, Bitcoin’s adjusted SOPR, which measures whether coins are sold for a profit or a loss, has remained below 1.0 for 13 consecutive days. This reading means that BTC moved on-chain is sold at an average loss, which Adler associates with weaker holders leaving the market.