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Altcoins will regain the ground, but this time the scenario seems different. Historically, each Altseason was triggered by the rotcoin capital rotation on an alternative cryptus, leading to a generalized market flight. According to Ki Young Ju, CEO of the cryptocurrency, this cycle could change. He claims that contemporary dynamics are not based on the leakage in the dominance of bitcoins, but on the flow of liquidity from Stablecoins. An unprecedented situation that could redefine the Kryptos market trajectory.
Altcoin market that wears Stablecoins
The Ki Young Ju Declaration is the main change in understanding crypto cycles. “Bitcoin’s dominance no longer defines Alteason.” The volume of trading is now being calculated, ”explains Publication 21 February 2025 on the Social Network X (formerly Twitter). In fact, unlike previous formulas, where investors directly moved their bitcoin gains to altcoins, today are holders of stablecoins who put liquidity on the market.
The numbers confirm this observation: The volume of altcoin transactions is now 2.7 times higher than for bitcoins, an indicator that testifies to the renewed interest in these assets. However, this dynamics does not affect the entire market in a homogeneous way. The CEO of the cryptocurrency is overwhelmed by its optimism and underlines 21 February on the X platform that it is a “very selective altseason”, where “only a few altcoins show real ascending dynamics”. The absence of new fresh capital could therefore reduce the range of movement and prevent a generalized increase in power.
Changing market: Between institutionalization of bitcoins and uncertainty on altcoins
The boom in Bitcoins ETF and increased acceptance of assets by institutions changed the situation. Bitcoin is now developing in a separate environment, decorated from altcoins. In addition, “Bitcoin has built its own institutional layer 2 through ETF, MSTR and funds, making it impossible for altcoins,” said Ki Young Ju 3. December 2024 on the X platform.
Another key factor, the Stablecoins market, which has climbed to $ 232 billion, still plays a central role in the stock exchanges. These assets, often used as intermediaries between Fiat and Kryptos, make it easy to finance altcoins. However, the risks remain: some blockchains such as Solana are subject to turbulence, mainly because of 40 % of user activity collapse due to carpets and fraudulent maneuvers. Instability that could prevent the real bull run of altcoins.
If an increase in the volume of altcoins trading is renewed, the question of the sustainability of this trend remains open. The absence of external capital and the growing institutionalization of bitcoins could limit the extent of the phenomenon. In this context, only a few selected projects are doing well, while others have capital trips related to the risks associated with the market. This beginning of Altseason is therefore more nuanced than it seems. It’s no longer a binary cycle where money let bitcoins irrigate all altcoins. From now on, investors have to deal with the natural selection of the market, where only the strongest projects that benefit from the substantial liquidity of stablecoins will actually be able to use this new dynamics.
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Graduate of Science after Toulouse and holder of Blockchain Consultant Certification, published by Alyrou, joined the adventure of Cointtribuni. The general public about this constantly evolving ecosystem. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.
