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Altcoin Trader Interest Drops to 19% as Funds Shift Toward RWA Perpetual Contracts

(9 days ago) · 1 source · Summarized by CryptoBipto

Reports indicate that only 19% of traders are maintaining altcoin positions, while trading flows are increasingly moving toward real-world asset (RWA) perpetual contracts. An estimated $18 billion in potential outflows has been identified as a risk to the broader altcoin market.

WHY IT MATTERS

In crypto, "altcoins" are any cryptocurrencies other than Bitcoin — there are thousands of them. "Perpetual contracts" (or "perps") are a type of derivative that lets traders bet on the price of an asset without actually owning it, and unlike traditional futures, they have no expiration date. "RWA" stands for real-world assets — things like real estate, government bonds, or commodities that have been turned into digital tokens on a blockchain. Think of it like this: if altcoins are like speculative startup stocks, RWA-linked products are more like trading digital versions of traditional investments. This report suggests that many traders are moving their money away from speculative altcoins and toward these RWA-linked products, which could reduce the amount of money flowing into smaller cryptocurrencies and affect their trading activity and liquidity.

According to a report from CryptoSlate, altcoin demand appears to be weakening as a growing share of trading activity shifts toward perpetual contracts tied to real-world assets (RWAs).

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SOURCES

  • cryptoslate.com

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AltcoinsRWA TokenizationPerpetual ContractsTrading FlowsMarket Sentiment