Altcoin Trading Volume Hits Post-FTX Low as 38% of Tokens Near Historic Bottoms

FTX’s bankruptcy filing on November 11, 2022, dealt a severe blow to crypto-market liquidity and investor confidence, prompting a prolonged shift toward large assets such as Bitcoin. Because altcoins have smaller market capitalizations and carry greater volatility and delisting risks, changes in their trading volumes are seen as an important gauge of market risk appetite and retail participation.

The latest data showed altcoin trading volume had fallen to its lowest level since FTX’s collapse, while prices for 38% of tokens were nearing their respective historic bottoms. Capital is currently moving into equities and commodities, further weakening demand for crypto assets. Although the total amount withdrawn was not disclosed, the contraction in trading could also offer an opportunity to build positions at low prices before the next wave of capital returns.