Where Is The Capital Going?

Altcoin markets (excluding Ether (ETH)) recently saw $266 billion in net selling volume on centralized exchanges, the deepest reading since the metric began tracking spot demand in 2020.

Altcoins accounted for 51% of Binance futures trading volume on June 16, compared with 28.85% for Bitcoin and 20.20% for Ether, positioning the exchange as a leader in derivatives activity in 2026.

The divergence between record selling and dominant trading activity points to capital rotating within crypto and also into alternative exchange products.

Altcoin trading stays active despite outflows

Crypto analyst IT Tech noted that the one-year cumulative buy-sell difference for altcoins, excluding Bitcoin (BTC) and Ether (ETH), dropped to -$266 billion on June 16.

One-year cumulative buy-sell volume for altcoins. Source: CryptoQuant 

The current readings show that selling pressure has outweighed buying demand for an extended period, pushing the cumulative balance to a new low.

However, altcoin trading activity tells a different story. Data shows altcoins accounted for 51% of daily futures trading volume on June 16, compared with 28.85% for Bitcoin and 20.20% for Ether. Altcoins have led exchange trading volumes for most of 2025, aside from a brief period in February when Bitcoin overtook the sector.

Volume dominance between BTC, ETH, and altcoins. Source: CryptoQuant

The combination of elevated futures trading activity and deeply negative spot demand points to capital recycling within the altcoin market rather than fresh spot inflows. This shows investors continuing to trade altcoins, although aggregate spot purchases have not kept pace with the selling volume.

Related: BitGo courts crypto firms awaiting MiCA approval amid Binance licensing concerns

Crypto liquidity shifts beyond altcoins

Market analyst MorenoDV indicated that exchange stablecoin balances have changed little since December 2024. The exchange supply ratio for ERC-20 stablecoins has fluctuated between 0.40 and 0.46, meaning roughly 40% to 46% of circulating stablecoins have stayed on exchanges for more than a year.

Stablecoins (ERC20) exchange supply ratios. Source: CryptoQuant

During the same period, Bitcoin experienced price swings exceeding 50%, trading between $60,000 and $120,000. Binance held between 25% and 30% of the total stablecoin supply, accounting for more than half of exchange-held reserves. This indicates liquidity has stayed available, but capital deployment has become increasingly selective.

Part of the capital appears to be targeting traditional asset products offered by crypto exchanges. According to CryptoQuant, metals futures volume peaked at nearly $500 billion in March 2026, as gold and silver prices reached record highs. The trading activity in pre-IPO perpetual products expanded to $715 million in May and $2 billion in June, up from just $2 million in March.

Binance processed $10.3 billion in pre-IPO perpetual volume in June, roughly 20 times higher than the entire month of May, while controlling about 83% of the segment. Growth in metals, oil, equities, and pre-IPO contracts highlights how exchange users are increasingly allocating liquidity across a wider range of assets, with Binance continuing to hold the largest concentration of deployable stablecoin capital.

Related: Hyperliquid open interest surges 32% in week: Is $80 HYPE next?