Market maker DWF Labs claims a sudden 50% drop in spot trading volume, Matrixport: The rising trend of competitive coins is in doubt

Matrixport and cryptocurrency market maker DWF Labs both pointed out a sudden drop in market trading volume on April 1st, suggesting that the bullish momentum in competing coins may be hindered.

Matrixport: Trading Volume Drops to Early March Levels

Matrixport noted in its official Telegram channel that the cryptocurrency market's trading volume started to surge around early March, driven by traders' expectations for the Dencun upgrade and reduced L2 transaction fees.

Specific political developments have also become one of the market's speculative factors, with the trading volume of competitive coins increasing daily. However, as the market's trading volume significantly declined and fell back to early March levels, Matrixport believes the sustainability of the competitive coins' rally is now in question.

DWF Labs: Spot Trading Volume Nearly Halved

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

While the cryptocurrency market cap is slowly rising with a monthly increase of +16%, spot trading volume has dropped by -44%. Overall, it appears that there are more and more cryptocurrencies flowing and trading among holders, awaiting some event like a halving? This should bring significant volatility when it happens.

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As of the deadline, Bitcoin has dropped below $70,000 to $69,521, and Ether has fallen 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 volatility
Interesting 🎢

— Andrei Grachev (@ag_dwf) April 1, 2024