Source: Cointelegraph Original: "{title}"

Analysts indicate that the decline in cryptocurrency trading volume and digital asset prices reflects trader fatigue and may signal a weakening of market momentum.

Since February, overall cryptocurrency trading volume has been decreasing due to low-price buying opportunities. According to CoinGecko, daily trading volume peaked at $440 billion in early February this year. Since then, trading volume has dropped by 63%, falling to $163 billion as of March 12.

Data from market data company CoinMarketCap is slightly lower but shows the same trend—trading volume fell by 52% after peaking in early March 2025, reaching current levels.

Analysis firm Santiment stated on March 13 via the X platform that the decline in trading volume indicates that investor enthusiasm for this asset class is waning.

It noted, "When the trading volume of major cryptocurrencies continues to decline, even with slight price recoveries, it usually means that trader enthusiasm is fading."

Santiment also mentioned that trader behavior "indicates that after a further decline in market capitalization over the past two weeks, market sentiment is filled with fatigue, despair, and abandonment."

Cryptocurrency trading volume is declining. Source: Santiment

Since early February, the total market capitalization has decreased by nearly 25%, shrinking by $900 billion, as the correction in the crypto market deepens, leading to a significant downturn.

In the past 10 days, this decline has accelerated, with the market dropping by 15%, amid growing concerns about a U.S. economic recession and escalating global trade tensions.

Santiment stated that traders have become more cautious, suggesting they may not believe that current prices will continue to rise. "Essentially, the reduction in trading activity reflects uncertainty, as fewer traders believe that buying at current price levels will yield profitable results," the analysts added.

Santiment pointed out that the weakening of trading volume against the backdrop of a slight price rebound can serve as an "early warning signal of weakening market momentum," adding that without strong buying participation, price increases may quickly lose momentum, "due to a lack of sufficient support to maintain an upward trend."

"This leads to the possibility that any rebound may be temporary, and prices are susceptible to falling again."

However, the analysis noted that a reduction in trading volume during a slight rebound does not necessarily indicate a bearish signal. Trading volume is an indicator of retail and institutional investor participation and must begin to rise before prices increase.

"To indicate a healthy and sustainable market recovery, bulls typically hope to see prices and trading volume rise simultaneously."

Currently, the market capitalization of cryptocurrencies is approximately $2.8 trillion, comparable to the same period last year when the market experienced seven months of consolidation.

Meanwhile, the Crypto Fear and Greed Index remains in the "Fear" zone, below 50, having stayed at this level since February 21.

Related: Four signs that the $76,700 Bitcoin price may be the ultimate low point.

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