Originally published on: December 02, 2024
The cryptocurrency market is abuzz with anticipation for the upcoming altcoin season, but according to a market analyst, the traditional factors driving this phenomenon may be evolving.
Ki Young Ju, CEO of CryptoQuant, recently stated that altseason is no longer solely determined by capital rotating from Bitcoin to altcoins. In a post on December 2nd, he explained that altcoin trading volume has become more prominent against stablecoin and fiat currency pairs.
This shift is evident as altcoin trading volume for Bitcoin pairs has remained low, despite the recent surge in Ether’s price. Altcoins like XRP and Solana are nearing all-time highs while Bitcoin consolidates below $100,000.
The increase in aggregate altcoin trading volume for stablecoin pairs reflects genuine market growth rather than just asset rotation, according to Ki.
This transformation suggests a sustainable evolution in the crypto market, driven by stablecoins’ liquidity and stability. Additionally, the nature of capital flowing into Bitcoin has changed, with institutional investors now playing a significant role.
While altcoin performance has been promising, the altcoin season index indicates that the altseason is on the horizon. According to this index by Blockchain Center, 73% of the top 50 altcoins have outperformed Bitcoin in the past 90 days.
As the altcoin season index approaches the 75% threshold, market participants are advised to monitor stablecoin liquidity and the Bitcoin dominance index for signs of an imminent altcoin season.
This article serves as information only and does not offer investment advice. Readers are encouraged to conduct their own research before making any financial decisions. Stay tuned for more insightful articles by subscribing to the Markets Outlook newsletter for valuable market insights and updates delivered every Monday.
