Cryptocurrency analytics firm Alphractal, in its latest assessment, noted that the decline in interest in the crypto market is also reflected in on-chain data. The company said stablecoin volumes, in particular, offer a strong indicator of market activity, liquidity and risk appetite.
According to Alphractal, the decline in interest in Bitcoin and altcoins, as evidenced by Google searches, Wikipedia views and social metrics, is also clearly felt on the on-chain side. This is especially evident in stable trading volumes.
The analysis highlights USDT data on the Ethereum network. He notes that after a sharp rise, the average on-chain volume has entered a downward trend. This outlook indicates declining activity in DeFi, NFTs, and more sophisticated transactions, often coinciding with the types of periods of lower market enthusiasm.
On the USDT On the Tron network side, it is indicated that after a long growth cycle, the momentum of volume growth has started to slow down. Alphactal emphasizes that USDT on Tron is widely used globally for payments, remittances and spot transactions, and that this slowdown could indicate a global recession in retail investor activity.
A different image appears on the USDC in front. While USDC volume continues to increase across all channels, current levels appear to be significantly lower than the highs seen in November 2021. This reflects a more institutional and cautious usage profile, indicating that the “exuberant” trading behavior typical of bull markets has not yet been observed.
Alphractal notes that macro-level on-chain data conveys a common message: declining social engagement leads to decreased on-chain activity; Stablecoin data, on the other hand, indicates a phase of market contraction or consolidation. According to the company, the current environment is more defensive and selective, making it very sensitive to macroeconomic shocks.
According to the company’s analysis, the current situation suggests that a large-scale upward or downward movement could soon occur.
*This does not constitute investment advice.
