On-chain data shows Dogecoin, Solana, and other altcoins are currently seeing half the weekly Trading Volume compared to the end of 2024.
Dogecoin, Solana, & Others Have Seen A Decline In Volume Recently
In a new post on X, on-chain analytics firm Santiment has talked about the latest trend in the Trading Volume for the various assets in the cryptocurrency sector. This indicator measures, as its name suggests, the total amount of a given token that became involved in trading activities on exchanges over the past week.
When the value of the metric rises, it means trading activity related to the asset is going up. Such a trend can be a sign that interest in the cryptocurrency is increasing.
On the other hand, the indicator going down can imply investors are shifting their attention away from the coin as they are participating in a lower amount of trading.
Now, here is the chart shared by Santiment that shows the trend in the Trading Volume for nine major assets: Bitcoin, Ethereum, Dogecoin, Cardano, Solana, BNB, XRP, Tron, and Chainlink.
How the current volume in the market compares against the same time from last year | Source: Santiment on X
As displayed in the above graph, the Trading Volume has witnessed a plunge across the sector over the last couple of weeks. Bitcoin, Dogecoin, and other assets have all shown price consolidation in this period, so the cooldown in trading activity could partly be due to traders getting bored.
Generally, investors like to trade more when price action is “exciting.” Volatile moves like rallies or crashes especially attract attention to the market. In phases of sideways price action, though, interest tends to die down.
There is also another reason behind the recent decline in the Trading Volume besides the price action: the holidays. From the chart, it’s visible that the holiday period at the end of 2024 also saw the indicator have a similarly low value for Bitcoin.
There has been one big difference in market behavior between now and then, however. As the analytics firm has explained:
Ethereum and other altcoins like Solana, Cardano, and Dogecoin were still seeing significant movement. This year, they have less than half the weekly trading volume.
What could be the consequence of this low activity? While hard to say for certain, price action usually tends to be muted when there is a lack of trading interest, as moves fail to build momentum in either direction.
Thus, it’s possible that the current phase of consolidation could stretch for the market, unless some surprise news drops that becomes a trigger for volatility.
DOGE Price
Dogecoin saw a surge to $0.128 earlier in the week, but the memecoin’s price has declined since then as it’s back at $0.122.
Looks like the price of the coin has overall moved sideways over the last few days | Source: DOGEUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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