The crypto market is contracting at a pace reminiscent of the 2022 bear market. According to data from 10x Research posted on X, total trading volume across cryptocurrencies has hit its lowest level since 2022, with overall market capitalization hovering around $2.3 trillion, down 1.7% week-over-week. While the market cap decline is modest, the simultaneous volume contraction sends a clear signal: market activity is cooling rapidly.
Volume Drops Across Major Assets, ETH Underperforms BTC by a Factor of Three
The weekly average trading volume across all crypto markets fell to $90 billion, 7% below the historical average. Bitcoin's weekly volume stood at $38.2 billion, 5% below its average, while Ethereum's weekly volume dropped to $18.3 billion, a staggering 18% below its average—more than three times the decline of Bitcoin. On a longer timeline, cumulative trading volume on major exchanges through March 22 reached $652 billion, down 58% year-over-year. March spot trading volume is expected to total around $920 billion, with Q1 2026 volume at approximately $3.2 trillion—45% lower than Q1 2025 and still 20% below Q1 2022's ~$4 trillion.
Ethereum Gas Fees Hit Historic Lows, On-Chain Activity Nearly Frozen
Ethereum's situation is even more alarming. This week, Ethereum's gas fee dropped to 0.12 Gwei, placing it in the 17th percentile of its historical distribution—meaning fees have been higher than this level for most of the asset's history. This indicates not just a slowdown in ETH trading but a broader contraction in on-chain activity across the Ethereum ecosystem: DApp interactions, DeFi operations, and NFT trades are all grinding to a halt. While Bitcoin's volume is only 5% below its average, Ethereum's is 18% below, underscoring that altcoin markets are cooling far more sharply than mainstream narratives suggest.
Funding Rates Rise from Extremely Low Levels, Market Awaits Catalyst
Derivatives indicators show mixed signals. Bitcoin's funding rate rose 4.1% to 1.5% this week, but remains in the 13th percentile of the past 12 months. Futures open interest increased by $100 million to $21.5 billion—a modest expansion. Ethereum's funding rate climbed 3.7% to 2.8%, also sitting in the 12th percentile. Open interest in ETH futures grew by $100 million to $11.8 billion. Higher funding rates combined with slight increases in open interest typically suggest mild bullish sentiment. However, the 13th and 12th percentiles indicate that for nearly 90% of the past year, market participants have been more optimistic. The recovery from extremely low levels does not signal a shift to bullishness; it only means the market is slightly less bearish.
10x Research concludes that volume has hit multi-year lows, on-chain usage is at a minimum, and funding rates, while recovering, remain in historically low percentiles. The market appears to be in a waiting pattern rather than a positioning phase. This quiet period may persist until a clear catalyst emerges.