Matrixport and crypto market maker DWF Labs both pointed out the sharp drop in market trading volume on April 1. The former believed that the rise of altcoins may be hindered.

Matrixport: Trading volumes fall to early March levels

Matrixport pointed out on the official Telegram channel that crypto market trading volume began to surge around the beginning of March, which was a frenzy caused by traders’ expectations of Dencun’s upgrade and lower L2 transaction fees.

In addition, certain political developments have also become one of the market speculation factors, and the trading volume of altcoins is rising day by day. However, as market trading volume dropped significantly and fell back to the level of early March, Matrixport believes that the sustainability of the altcoin rally is seriously doubtful.

Trading volume returned to early March levels DWF Labs: Spot trading volume nearly halved

Andrei Grachev, co-founder of DWF Labs, also tweeted on April 1:

While cryptocurrency market capitalization is slowly climbing (+16% month-on-month), spot trading volumes are down -44%. Overall, there seems to be an increasing number of cryptocurrencies floating around, being traded among holders who are waiting for some event (halving?) that should bring huge volatility.

(Controversial market maker DWF Labs was criticized as not eligible to share the stage, responded to criticism from peers: Don’t cry)

Bitcoin fell below $70,000 (69,521) at press time, and Ethereum also fell to $3,539.

While crypto market cap is slowly climbing up (+16% M2M), spot volumes are decreasing (-44% M2M). Overall, it seems like more and more crypto traded and distributed among holders, who are waiting for some events (Halving?), which should come with huge volatilityInteresting

— Andrei Grachev (@ag_dwf) April 1, 2024

This article Market maker DWF Labs said spot trading volume plummeted by 50%, Matrixport: The rise of altcoins is in doubt first appeared on Chain News ABMedia.