Why the Stability of Altcoins Matters Now

Summary:
While altcoins are currently experiencing low trading volumes and minimal public interest, there are signs of stability compared to past market pullbacks. As Bitcoin maintains its strong position, altcoins are showing resilience. This article explores the current state of altcoins and their potential future performance.

Key Takeaways:

Altcoins are facing low trading volumes, but they are stabilizing instead of crashing.
Bitcoin's value remains near cycle highs, contrasting with the struggles of altcoins.
Public interest in cryptocurrencies has sharply declined, reaching multi-year lows.
Historically, low interest often precedes consolidation or bear markets.
Altcoins are potentially positioned to perform relatively well compared to Bitcoin if market conditions shift.

Altcoins aren’t crashing anymore - Here’s why that matters

Declining Liquidity in Altcoins

Trading activity for major altcoins has dramatically decreased, particularly in December.

altcoins
Source: CryptoQuant

Ripple’s XRP has seen its trading volume fall to approximately $32 billion, marking its lowest point for 2025. Nearly half of this volume comes from the Binance exchange.

XRP Trading Volume
Source: CryptoQuant

BNB’s trading volume also dipped to around $13.7 billion, one of the year's lowest figures, with Binance exchange activity dominating.

BNB Trading Volume
Source: CryptoQuant

For Solana, often highlighted as a leading large-cap altcoin, the volume has dropped to approximately $43 billion, representing its weakest level since 2024.

SOL Trading Volume
Source: CryptoQuant

Cardano has similarly struggled, with volumes hitting around $3.8 billion, reflecting the overall subdued interest in the altcoin market.

Decline in Public Interest

The reduction in trading volume correlates with a significant drop in public interest in cryptocurrencies. Google's data on crypto-related searches shows that interest is at its lowest in several years, even while prices remain relatively high.

Public Interest in Crypto
Source: Alphractal

Over the last five years, sharp increases in searches for cryptocurrency have coincided with price surges or periods of panic. Notably, the current market lacks both phenomena.

Interest Data
Source: Alphractal

Data from the past 90 days indicates a steady decline in interest for December, with no signs of recovery for either Bitcoin or major altcoins. As Alphractal CEO Joao Wedson revealed on X, such low interest levels are typically precursors to extended periods of consolidation or bear markets.

The Current Altcoin Landscape

Although declining volumes and interest might evoke panic, it's essential to consider relative performance. Altcoins are currently stabilizing, even as Bitcoin remains elevated.

Altcoin Performance
Source: Alphractal

Wedson highlights that during previous corrections in 2019 and 2022, altcoins did not reach new lows despite large-cap cryptocurrencies declining further. This trend allowed altcoins to outperform Bitcoin regardless of BTC’s short-term performance. If Bitcoin experiences another downturn, altcoins with already compressed prices may weather the storm better and exhibit relative strength against BTC.

Conclusion

The current situation for altcoins presents a complex and interesting scenario. As Bitcoin retains its strong footing, the stabilization of altcoins could signal favorable conditions for the future—provided that public interest and trading volumes can recover.