Altcoin Season Takes a New Turn as Stablecoins Drive Gains, Says CryptoQuant CEO

CryptoQuant's Ki Young Ju has recently declared the onset of altcoin season, but this time, things are different. Instead of the typical flow of capital from Bitcoin into altcoins, Ju points out that it's stablecoin holders driving the action.

With limited liquidity in the market, this altcoin surge is highly selective, and only a handful of coins are seeing notable price increases.

Ju observed a significant spike in altcoin trading volumes, which now surpass Bitcoin’s by more than two and a half times. However, he stressed that this isn’t a typical altcoin season. In fact, he compared it to a “PvP fight,” where a few lucky tokens are receiving attention while others remain stagnant. This shift away from the Bitcoin-driven altcoin rally is in line with Ju’s earlier predictions that this market cycle would be challenging, with only a select few assets experiencing substantial gains.

Not everyone agrees with Ju’s assessment. Some crypto enthusiasts, like RobW, have questioned whether the market can truly be called an “altcoin season” when only a handful of tokens are showing strong performance. Similarly, others like DeimosWeb3 have expressed doubt, suggesting that the market is far from the typical altcoin surge.

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Meanwhile, there’s been buzz around China’s recent fiscal adjustments, with some speculating that its new economic policies might inject fresh liquidity into the global market, potentially benefiting crypto. However, analysts are cautious, pointing out that China’s changes to its M1 money supply don’t actually involve new capital. Despite this, some traders remain hopeful, believing that any infusion of liquidity, no matter the form, could trigger a crypto market rally.

Though the market remains uncertain, a few altcoins like Sei, Sui, and Zksync are gaining traction, signaling potential new trends. However, it’s unclear whether these movements are sustainable or just short-lived spikes in a fragmented market. The traditional altcoin season, driven by a broad rotation from Bitcoin to altcoins, seems to be fading as altcoins carve out their own niches and attract capital independently.

Alexander Zdravkov