On-chain data has revealed an interesting phenomenon—looking at recent transaction activity, the weekly trading volumes of DOGE, SOL, and a number of mainstream altcoins have actually halved compared to the same period last year. This isn’t an isolated case for a single coin; Santiment’s overall trading activity indicators are also showing a structural decline.

Trading volume is the most straightforward indicator. When it increases, it signals a hot market, active chips, and strong popularity; when it decreases, it indicates the market is slowing down. Currently, BTC is oscillating within a range, with market volatility not fully satisfying traders, and the enthusiasm for altcoins naturally cooling down. In previous years, there have been quiet periods at the end of the year, but this year's "cooling" is noticeably different.

What’s going on? Funds have become more cautious. Large institutions and big investors tend to flock toward deeply liquid assets like BTC and ETH, focusing their strength on these two leading coins. On the other hand, altcoins haven’t seen any major moves to stimulate interest recently—news is lackluster, fundamentals are unremarkable, and participants are waiting for news, adopting a passive defensive mindset rather than actively pushing forward.

However, sluggish trading volume isn’t necessarily a bad sign. Conversely, it could indicate that after initial volatility, the market is entering a phase of digestion and consolidation. Without large transactions driving the trend, it’s hard to form a clear direction. Currently, this can be understood as a structural adjustment period, not a sign of a crash or the start of a bear market.

In one sentence: where has the volume gone? It reveals more about the current market’s real attention and phase than price does. Historically, such low activity usually appears on the eve of a trend reversal, not during the most explosive market moments.