Ki Young Ju, the CEO at CrypotQuant, has shared his argument regarding the altcoin season. According to a post on his official X page, he argued that the main driver of the altseason is stablecoin liquidity and not Bitcoin (BTC) asset rotation. Unlike in traditional alt seasons, where Bitcoin trading pairs influenced altcoin trading volume, it is now fueled by stablecoin and fiat currency pairs.
Alt season is no longer defined by asset rotation from #Bitcoin.
The surge in altcoin trading volume isn’t driven by $BTC pairs but by stablecoin and fiat pairs, reflecting real market growth rather than asset rotation.
Stablecoin liquidity better explains the altcoin markets. pic.twitter.com/riejM7oXyk
— Ki Young Ju (@ki_young_ju) December 2, 2024
Altseason, or rather altcoin season, is a market condition in which the prices of alternative coins perform better than Bitcoin in terms of price appreciation. Significant price rallies and high volatility characterize this crypto market condition, which results in excitement and market unpredictability for crypto traders.
During all seasons, crypto investors venture into altcoins; money flows out of Bitcoin, increasing altcoin prices. As investors seek higher returns from altcoins, the Fear of Missing (FOMO) kicks in, and more investors pump money outside Bitcoin. Altcoin seasons can last anywhere from weeks to months.
Is It Altcoin Season Yet?
Blockchain Centre says the altcoin season index is 73; hence, it is not yet an altseason. Only 73% of the top 50 cryptocurrencies have outperformed Bitcoin in the last 90 days.
The chart above implies that the crypto market is nearing altcoin season when 75% of altcoins outperform Bitcoin within 90 days (3 months).
Another chart by Blockchain Centre indicates the top 50 performers in the last 90 days. The data excludes stablecoins like USDT and asset-backed tokens like WBTC.
Conclusion
As altcoins aim to break above their all-time highs, it is vital for crypto traders and investors who are eyeing the altcoin season to keep an eye on the Bitcoin dominance index and stablecoin liquidity. These two metrics are crucial in monitoring the start of an altseason, and they can present various opportunities for profit-making.
