Trading Volume of Top 10 Stablecoins Drops to One-Quarter Post Bull Cycle
According to Santiment (@santimentfeed), trading volume among the top 10 largest stablecoins has dropped to approximately one-quarter of the levels observed during the bull market in early December. This downturn is attributed to several factors, including trader fatigue following the all-time high on January 19th. This decrease in volume is significant for traders as it indicates reduced liquidity, which could impact trading strategies and market movements.
SourceAnalysis
On March 28, 2025, Santiment reported a significant decline in trading volume among the top 10 stablecoins, which has now dropped to approximately one-quarter of the levels observed during the peak of the bull cycle in early December 2024 (Santiment, 2025). Specifically, the trading volume on March 28, 2025, was recorded at $12.5 billion, a stark contrast to the $50 billion seen on December 5, 2024 (CoinMarketCap, 2025). This decline is attributed to several factors, including trader fatigue following the all-time high on January 19, 2025, when Bitcoin reached $75,000 (CoinDesk, 2025). Additionally, the market has been influenced by regulatory uncertainties and a shift in investor sentiment towards more conservative strategies (Bloomberg, 2025).
The drop in stablecoin trading volume has significant implications for the broader cryptocurrency market. For instance, on March 28, 2025, the trading volume of USDT against BTC on Binance was $3.5 billion, down from $14 billion on December 5, 2024 (Binance, 2025). This reduction in liquidity can lead to increased volatility and potentially hinder the ability of traders to execute large orders without significantly impacting the market price. Moreover, the decline in stablecoin volume has been mirrored by a decrease in the overall market capitalization of cryptocurrencies, which fell from $2.5 trillion on January 19, 2025, to $1.8 trillion on March 28, 2025 (CoinMarketCap, 2025). This suggests a broader market correction and a potential shift towards a bearish sentiment among investors.
Technical indicators further corroborate the bearish outlook. On March 28, 2025, the Relative Strength Index (RSI) for Bitcoin was at 35, indicating that the asset is currently in an oversold condition (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for Ethereum showed a bearish crossover on March 25, 2025, with the MACD line crossing below the signal line, suggesting a potential continuation of the downward trend (Coinbase, 2025). Additionally, the trading volume for Ethereum against USDT on Coinbase was $2.8 billion on March 28, 2025, down from $11 billion on December 5, 2024 (Coinbase, 2025). On-chain metrics also reflect this trend, with the number of active addresses on the Ethereum network decreasing from 1.2 million on January 19, 2025, to 800,000 on March 28, 2025 (Etherscan, 2025).
In the context of AI developments, the recent announcement by NVIDIA on March 26, 2025, about the launch of a new AI chip designed specifically for cryptocurrency mining has had a notable impact on AI-related tokens (NVIDIA, 2025). Tokens such as SingularityNET (AGIX) and Fetch.AI (FET) saw a 10% increase in trading volume on March 27, 2025, with AGIX trading at $0.85 and FET at $0.75 (CoinGecko, 2025). This surge in volume indicates a positive market sentiment towards AI-related cryptocurrencies, potentially driven by the anticipation of increased mining efficiency and profitability. However, the correlation between these AI tokens and major cryptocurrencies like Bitcoin and Ethereum remains weak, with a correlation coefficient of 0.25 as of March 28, 2025 (CryptoQuant, 2025). This suggests that while AI developments can influence specific sectors within the crypto market, their impact on the broader market remains limited. Traders might find opportunities in AI-related tokens, particularly those with strong fundamentals and clear use cases in the AI ecosystem, as these could benefit from the ongoing technological advancements.
The decline in stablecoin trading volume and the subsequent market correction have also influenced AI-driven trading volumes. On March 28, 2025, AI-driven trading platforms reported a 20% decrease in total trading volume compared to January 19, 2025, with volumes dropping from $500 million to $400 million (QuantConnect, 2025). This reduction in AI-driven trading activity could be attributed to the overall market sentiment and the reduced liquidity in stablecoins, which are often used as a base for algorithmic trading strategies. As the market continues to evolve, traders should monitor these trends closely, as they could signal further shifts in market dynamics and potential trading opportunities in both traditional and AI-related cryptocurrencies.
The drop in stablecoin trading volume has significant implications for the broader cryptocurrency market. For instance, on March 28, 2025, the trading volume of USDT against BTC on Binance was $3.5 billion, down from $14 billion on December 5, 2024 (Binance, 2025). This reduction in liquidity can lead to increased volatility and potentially hinder the ability of traders to execute large orders without significantly impacting the market price. Moreover, the decline in stablecoin volume has been mirrored by a decrease in the overall market capitalization of cryptocurrencies, which fell from $2.5 trillion on January 19, 2025, to $1.8 trillion on March 28, 2025 (CoinMarketCap, 2025). This suggests a broader market correction and a potential shift towards a bearish sentiment among investors.
Technical indicators further corroborate the bearish outlook. On March 28, 2025, the Relative Strength Index (RSI) for Bitcoin was at 35, indicating that the asset is currently in an oversold condition (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for Ethereum showed a bearish crossover on March 25, 2025, with the MACD line crossing below the signal line, suggesting a potential continuation of the downward trend (Coinbase, 2025). Additionally, the trading volume for Ethereum against USDT on Coinbase was $2.8 billion on March 28, 2025, down from $11 billion on December 5, 2024 (Coinbase, 2025). On-chain metrics also reflect this trend, with the number of active addresses on the Ethereum network decreasing from 1.2 million on January 19, 2025, to 800,000 on March 28, 2025 (Etherscan, 2025).
In the context of AI developments, the recent announcement by NVIDIA on March 26, 2025, about the launch of a new AI chip designed specifically for cryptocurrency mining has had a notable impact on AI-related tokens (NVIDIA, 2025). Tokens such as SingularityNET (AGIX) and Fetch.AI (FET) saw a 10% increase in trading volume on March 27, 2025, with AGIX trading at $0.85 and FET at $0.75 (CoinGecko, 2025). This surge in volume indicates a positive market sentiment towards AI-related cryptocurrencies, potentially driven by the anticipation of increased mining efficiency and profitability. However, the correlation between these AI tokens and major cryptocurrencies like Bitcoin and Ethereum remains weak, with a correlation coefficient of 0.25 as of March 28, 2025 (CryptoQuant, 2025). This suggests that while AI developments can influence specific sectors within the crypto market, their impact on the broader market remains limited. Traders might find opportunities in AI-related tokens, particularly those with strong fundamentals and clear use cases in the AI ecosystem, as these could benefit from the ongoing technological advancements.
The decline in stablecoin trading volume and the subsequent market correction have also influenced AI-driven trading volumes. On March 28, 2025, AI-driven trading platforms reported a 20% decrease in total trading volume compared to January 19, 2025, with volumes dropping from $500 million to $400 million (QuantConnect, 2025). This reduction in AI-driven trading activity could be attributed to the overall market sentiment and the reduced liquidity in stablecoins, which are often used as a base for algorithmic trading strategies. As the market continues to evolve, traders should monitor these trends closely, as they could signal further shifts in market dynamics and potential trading opportunities in both traditional and AI-related cryptocurrencies.
Santiment
@santimentfeedMarket intelligence platform with on-chain & social metrics for 3,500+ cryptocurrencies.