CryptoQuant CEO Ki Young Ju: Note that the altcoin season has begun

CryptoQuant CEO Ki Young Ju announced: The altcoin season has begun! However, this market trend is very different from the past, how should investors deal with it?

Ki Young Ju: What's unique about this altcoin season

Bitcoin dominance is no longer a decisive factor

Traditionally, the start of the altcoin season is closely related to the decline in Bitcoin (BTC) market share. But Ki Young Ju pointed out that Bitcoin’s market share is no longer a key indicator, and the real driver is trading volume.

His observation results:

• The transaction volume of altcoin has reached 2.7 times that of Bitcoin, indicating that a large amount of funds are pouring into the altcoin market.
• Stablecoin holders invest directly in altcoins instead of transferring funds through Bitcoin, which is very different from previous trends.
• This altcoin season is "selective", and only altcoins with strong application scenarios and market narratives can stand out.
• Investors should conduct independent research (DYOR) to avoid blindly following the trend.

These views show that market capital flows are undergoing significant changes and investors need to re-examine their trading strategies.

Current Market Status: Does the data support a surge in altcoin trading volume?

Latest Market Data (February 21, 2025)

According to CoinGecko data, the current key market data are as follows:

It should be noted that although the altcoin transaction volume does exceed Bitcoin, the data shows that its proportion is 2.1 times, not 2.7 times as mentioned by Ki Young Ju. This may be due to differences in data sources, calculation methods, or specific time ranges from different exchanges.

Stablecoins become a source of funds, subverting the traditional market model

The traditional capital circulation model has been broken

Previous altcoin seasons were usually driven by bitcoin funds flowing into altcoins, that is, investors first exchange BTC for altcoins. However, this market showed a different trend:

• Stablecoins (such as USDT, USDC) funds flow directly into the altcoin market, rather than being transferred through Bitcoin.
• This means that the altcoin market has gained a new source of funding independent of BTC and no longer relies on the decline in Bitcoin market share to drive growth.

Currently, the total market value of the stablecoin market is approximately US$233 billion (CoinGecko data), which provides strong liquidity for the market and also allows investors to trade more flexibly.

This is consistent with the views discussed in January 2025, when Ki Young Ju pointed out: "The altcoin market is a zero-sum game, with limited overall liquidity." This means that not all altcoins can benefit from this wave of capital inflows, and only specific projects can perform well.

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