[Analysis] "Altcoin Market, Trading Volume Plummets and Stablecoin Inflows Decrease"

The altcoin market has been showing a clear downward trend over the past three months. Experts have analyzed that this trend may continue for some time and that it may take time to restore overall market confidence.

On the 29th (local time), according to AMBCrypto, a media specializing in virtual assets (cryptocurrency), the total market capitalization of the cryptocurrency market is approximately $2.72 trillion, a decrease of about 28% compared to the peak of $3.73 trillion in December last year. Additionally, Bitcoin dominance (the proportion of Bitcoin in the total market capitalization of virtual assets) remains high at 61%. This suggests that the inflow of funds into altcoins is relatively slowing.

Santiment, a virtual asset analysis company, stated, "The trading volume of the top 10 altcoins has decreased to a quarter of what it was in December last year," and "Traders are showing signs of fatigue. Some seem to have turned to a wait-and-see stance after realizing profits."

The net inflow of Tether (USDT) into major virtual asset exchanges has also plummeted. According to data from CryptoQuant, a virtual asset analysis company, the monthly USDT inflow has decreased to the level seen during the FTX collapse. Stablecoins are generally considered a kind of ammunition for purchasing cryptocurrencies.

The market capitalization of altcoins excluding Bitcoin and Ethereum (TOTAL3) has also been on a downward trend since last month. The media stated, "The current slump may be the initial stage of structural rebalancing rather than a short-term adjustment," and "If stablecoin inflows and trading volume do not recover, the rebound of the altcoin market may be limited."