CryptoQuant CEO says altseason trends shift away from Bitcoin
Altseason trends are no longer defined by Bitcoin rotation
The dynamics of altcoin season, often characterized by a rotation of funds from Bitcoin to alternative cryptocurrencies, are evolving.
According to Ki Young Ju, CEO of CryptoQuant, the latest trends suggest a departure from this traditional pattern. Data from the analytics platform reveals that stablecoins are now playing a more significant role in shaping altcoin markets, signaling a shift in how traders and investors allocate their assets, Сointelegraph informs.
Blockchain Center experts said, “Since 75% of the top 50 coins performed better than bitcoin over the last season (90 days), it's altcoin season”.
Stablecoins take center stage
CryptoQuant data shows that trading volume for stablecoin pairs has surged to peak levels in 2024. This development highlights a growing trend where investors use stablecoins as the primary medium for diversifying into altcoins. In contrast, Bitcoin's trading volume has seen a notable decline, reflecting a reduced influence of the leading cryptocurrency in driving altcoin market movements.
"Altseason trends are no longer defined by Bitcoin rotation," Ki Young Ju stated on X, noting the growing reliance on stablecoin liquidity. This change marks a significant departure from previous bull runs, where Bitcoin often dictated the pace and trajectory of altcoin surges.
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Implications for altcoin markets
The rise of stablecoins as a critical driver of altcoin liquidity underscores their increasing utility in crypto markets. This trend may also point to a maturing market where traders prioritize direct access to altcoins without the need to first convert from Bitcoin. Analysts believe this shift could lead to more targeted altcoin investments, potentially benefiting projects with strong fundamentals over speculative plays.
Looking ahead, market participants will likely monitor the impact of this shift on altcoin season cycles, with attention focused on how stablecoin liquidity continues to reshape market dynamics. As Bitcoin's dominance wanes in this context, the evolving role of stablecoins could pave the way for new opportunities and challenges in the crypto ecosystem.
We also reported that CryptoQuant CEO explains altseason delay.
