- Trading volume in major cryptocurrencies has hit its lowest point since mid‑2024.
- Santiment said the drop isn’t about panic selling, but more about trader fatigue.
- Crypto’s biggest bounces have often come when interest had fallen to rock‑bottom levels.
According to on-chain analytics firm Santiment, trading volume in major cryptocurrencies has hit its lowest point since mid‑2024. In a June 11 update, the company said the drop isn’t about panic selling, but more about trader fatigue and a lack of conviction.
This comes as Bitcoin, Ethereum, XRP, Solana, and other large-cap cryptocurrencies remain far below their peaks, even with ongoing institutional adoption and infrastructure development.
Most of the top 15 cryptocurrencies by market cap have decreased in value in the last 7 days by an average of 5%, according to CoinMarketCap.
Trading volume is one of the most closely monitored indicators in financial markets, as it measures participation and conviction. Santiment stated that a lot of traders have become disengaged following months of macroeconomic uncertainty, geopolitical drama, ETF outflows, and repeated liquidations on leveraged crypto trades.
Is This Capitulation?
Market analysts often use the term capitulation to describe the point at which investors become exhausted and lose interest after an extended decline.
Santiment also pointed to capitulation, saying that historically, crypto’s biggest bounces have often come not when sentiment was optimistic, but when interest had fallen to rock‑bottom levels. The theory is that if most sellers have already left and traders have largely stopped paying attention, it takes relatively little new demand to push prices higher.
Still, this doesn’t guarantee a rally, since low volume can sometimes persist for months. However, analysts see a big difference between shrinking participation and heavy selling. Where one is about fear and panic‑driven liquidations, the other is usually just boredom and hesitation.
That difference matters because on‑chain data shows long‑term holders are hanging in there pretty well.
What Could Spark a Recovery?
In this current situation, Santiment believes that if confidence starts coming back, even a modest amount of inflows could be sufficient to trigger a much-needed bounce, as sidelined capital flows back in.
In case the company’s thesis proves correct, potential triggers include renewed inflows into spot Bitcoin ETFs, progress on the US crypto legislation such as the CLARITY Act, additional institutional adoption announcements, Fed rate cuts or a shift to easier money, and notable tokenization projects from traditional banks.
Related: SpaceX IPO Is Draining Capital From Crypto, Has Bitcoin Lost?
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