The market is tired: cryptocurrency trading volume has fallen by 63%

The cryptocurrency market is showing signs of exhaustion as trading volumes decline and digital asset prices fall, analysts say. The sharp decline in trading activity indicates a weakening of investor enthusiasm, raising concerns about the market’s ability to sustain current momentum, Cointelegraph writes.

After hitting a yearly high in early February, total cryptocurrency trading volume has fallen by 63%, according to CoinGecko. Daily trading volume peaked at $440 billion in February, but has since fallen to $163 billion as of March 12.

CoinMarketCap data confirms a similar trend, noting that trading volume in 2025 peaked in early March before declining 52% to current levels.

Analyst firm Santiment said on March 13: "When trading volume for major cryptocurrencies consistently drops, even during slight price recoveries (like we have seen Wednesday), it typically points toward diminishing trader enthusiasm."

The total crypto market capitalization has fallen by almost 25% since the beginning of February, losing $900 billion as the market correction deepens. The decline has accelerated in the last 10 days, when the market lost 15% of its value on fears of a US recession.

Santiment analysts note that traders are becoming more cautious, not trusting the sustainability of the current price increase: "Essentially, reduced trading activity reflects uncertainty, as fewer traders are convinced that buying at current levels will yield profitable outcomes."

Experts warn that a decline in trading volumes amid modest price gains could be an early signal of weakening market momentum, as low buying levels make growth volatile, raising the possibility that any recovery could be temporary and prices remain vulnerable to another downturn.

While a decline in trading volumes is not necessarily a bearish signal, Santiment analysts note that a simultaneous increase in both trading volumes and prices is necessary for the market to recover.

"To signal a healthier and more sustainable recovery, bulls generally will want to see both rising prices and rising volumes simultaneously," analysts say.

The total cryptocurrency market capitalization is currently around $2.8 trillion, which is the same as a year ago before the seven-month consolidation period. Whether the current decline will lead to a prolonged decline or become the basis for a new rise is still unknown, but analysts agree that the key factor in understanding the future of the market will be the growth in trading volumes.