The next altcoin season has begun, according to Ki Young Ju, the CEO of CryptoQuant. He notes that the increased trading volume of altcoins, which is now about 2.7 times higher than Bitcoin’s, signals the start of this cycle. In a February 20 post on X, Young Ju pointed out that “BTC Dominance no longer defines alt season — trading volume does.”
Historically, altcoin seasons are marked by traders moving profits from Bitcoin into other cryptocurrencies. However, this time around, Young Ju highlights that there is no direct shift from Bitcoin to altcoins. Instead, stablecoin holders are turning their attention to altcoins.
He also warned that this altseason is quite selective, with only a few coins showing significant gains, largely due to the lack of fresh liquidity entering the market.
As of February 21, Bitcoin dominance is at 58%, having increased from 51.5% in December, based on data from CoinStats. Typically, during an altseason, this dominance figure declines.
Market dynamics are shifting as the stablecoin market capitalization has surged following Donald Trump’s presidential win. As of February 21, the total market cap of stablecoins is approximately $232 billion, according to CoinGecko.
Citi, the investment bank, expects stablecoin adoption to continue driving digital asset growth in 2025, especially for altcoins. However, concerns are rising around rug pulls and insider scams involving Solana-based memecoins, which are impacting investor sentiment and slowing down capital inflows into the network. This may hinder an altcoin rally.
Meanwhile, Bitcoin’s institutional adoption is increasingly separating it from the broader crypto market. Bitcoin exchange-traded funds (ETFs) in the US surpassed $100 billion in holdings by November, and public companies have collectively purchased more than $60 billion in Bitcoin, largely as a hedge against inflation.
Young Ju explained that Bitcoin has essentially developed its own paper-based Layer 2 ecosystem, through ETFs and other financial instruments. As a result, bridging Bitcoin to altcoins is now more difficult, and only a select few altcoins are seeing independent trends driven by new liquidity.
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