Cryptocurrency trading volume plummets to two-year low as market fatigue sets in

The low volume reflects the reluctance of market participants to bet aggressively in either direction at this time.

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

The company said the slowdown signals a market where traders have retreated significantly, a situation often seen before there is a sense of relief that confidence will eventually return.

Cryptocurrency traders withdraw as trading volume dries up

Santiment’s analysis, shared with X on June 11, noted that trading volumes for top equity assets were at a two-year low, framing this as a potential capitulation signal rather than the start of a new decline.

“Traders appear to be reluctant to actively buy or sell as macro uncertainties, geopolitical tensions, and recent liquidations keep participants on the sidelines,” the firm wrote.

While low activity may seem bearish, Santiment noted that historically, cryptocurrencies’ strongest recoveries have been preceded by periods of weak participation. The firm said markets rarely reverse up if investors are actively chasing prices, and that tipping points often appear when traders lose interest and expect little movement.

CoinGecko’s data confirmed Santimento’s trade flow view that Bitcoin’s 24-hour trading volume reached approximately $30 billion, down almost 20% compared to the previous day. However, Ethereum was much more modest at 1.40%, while Tron (TRX) and BNB saw activity decline by 4% and 10%, respectively.

Still, some altcoins recorded gains, such as Solana (SOL), whose 24-hour trading volume increased by 23%, and Ripple’s XRP, which increased by 11%.

Santiment says that despite continued development and institutional involvement in the industry, this type of market situation is becoming one where capital is lying dormant and looking for new reasons to move.

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“If confidence begins to return, even small inflows could be enough to bring dormant capital back into the sector and trigger a much-needed relief rally,” they judged.

On-chain signals are useless

The lack of participation from crypto investors is not happening in a vacuum, given that the on-chain backdrop has become more difficult recently.

For example, according to data released by CryptoQuant contributor Axel Adler Jr. earlier this week, the 30-day change in BTC’s realized cap was -1.1%, the most severe level of capital outflows since mid-March, with approximately $12 billion leaving the network since the May high.

Meanwhile, Bitcoin’s adjusted SOPR (an indicator that measures whether a coin is profitable or losing money) has remained below 1.0 for 13 consecutive days. This reading means that BTC moved on-chain is selling at an average loss, which Adler linked to weak holders leaving the market.