Capital seems to be slowly moving away from leading cryptocurrencies like Bitcoin (BTC) and Ether (ETH), as the latest data shows that traders on Binance are rotating into altcoins.
Altcoin rotation ongoing? BTC, ETH lose ground
According to recent analysis by CryptoQuant contributor Darkfost, investors are using the current consolidation phase to rethink their allocation to major digital assets by market cap, such as BTC and ETH.
Specifically, traders are adjusting their strategies based on the current overall market sentiment. The Fear and Greed Index shows that the cryptocurrency market is currently in a state of ‘greed,’ as it reads 61.
On a closer level, we can see some change in volume distribution among digital assets like BTC, ETH, and other lower-cap coins. Altcoins—besides ETH—currently account for 51% of trading volume on Binance crypto exchange.
In March 2026, the overall altcoin dominance was around 31%, while the Bitcoin.Dominance (BTC.D) figure was close to 59.7%.
Today, both BTC and ETH are seeing their market share decline, currently responsible for 30% and 17% of trading volume, respectively. The drop has been particularly noticeable in ETH, where its share plunged from around 27% on April 11 to around 17% as of today.
This strength observed in altcoins is particularly impressive, since it’s happening during a time when uncertainty remains high in the wider crypto market. There’s been a gradual rotation of liquidity from major digital assets to altcoins.
Altcoins show strength amid brewing geopolitical tensions
As reported earlier this month, the Strait of Hormuz blockade is not helping reduce the global geopolitical conditions.
The chain of events caused due to the blockade has cascaded into the digital assets market, leading to depressed price action among digital assets.
That said, the slip is seen in BTC.D over the past few weeks—coupled with liquidity rotation into altcoins—could be just the catalyst required to finally ignite a full-blown altcoin season.
