CryptoQuant Warns : This Altseason Is Unlike The Others

Altcoins are gaining ground, but this time, the scenario seems different. Historically, each altseason was triggered by a rotation of capital from Bitcoin to alternative cryptos, leading to a widespread market surge. However, according to Ki Young Ju, CEO of CryptoQuant, this cycle may be mutating. He claims that the current dynamics do not rely on a flight from Bitcoin dominance, but on liquidity flows from stablecoins. An unprecedented situation that could redefine the trajectory of the crypto market.

A stablecoin-driven altcoin market

Ki Young Ju’s statement represents a major change in the understanding of crypto cycles. “Bitcoin dominance no longer defines altseason. It is now the trading volume that matters,” he explains in a post on February 21, 2025, on social media platform X (formerly Twitter). Indeed, unlike previous patterns, where investors directly shifted their profits from Bitcoin to altcoins, today it is stablecoin holders who are injecting liquidity into the market.

The figures confirm this observation: the trading volume of altcoins is now 2.7 times that of Bitcoin, an indicator that reflects a renewed interest in these assets. However, this dynamic does not affect the entire market uniformly. The CEO of CryptoQuant tempers his optimism and emphasizes on February 21 on platform X that it is a “very selective altseason” where “only a few altcoins show a true bullish dynamic.” Thus, the absence of new fresh capital could limit the extent of the movement and prevent a widespread rise.

A market in mutation : between Bitcoin institutionalization and uncertainty over altcoins

The rise of Bitcoin ETFs and increased adoption of the asset by institutions have changed the game. Now, Bitcoin operates in a distinct environment, decoupled from that of altcoins. Moreover, “Bitcoin has built its own institutional Layer 2 through ETFs, MSTR, and funds, making it impossible to bridge to altcoins,” indicates Ki Young Ju on December 3, 2024, on platform X. This transformation could durably alter market dynamics and limit inbound flows towards alternative cryptos.

Another key factor is the stablecoin market, whose capitalization has soared to 232 billion dollars, playing an increasingly central role in transactions. These assets, often used as intermediaries between fiat and cryptos, facilitate rapid financing of altcoins. However, risks remain: certain blockchains such as Solana are experiencing turbulence, notably due to a 40 % drop in user activity caused by rug pulls and fraudulent maneuvers. An instability that could hinder a genuine bull run for altcoins.

While the increase in trading volumes on altcoins reflects a renewed interest, the question of the sustainability of this trend remains open. The absence of external capital and the growing institutionalization of Bitcoin could limit the scale of the phenomenon. In this context, only a few selected projects are reaping the benefits, while others face capital outflows linked to the inherent risks of the market. Thus, this beginning of altseason is more nuanced than it appears. It is no longer a binary cycle where money leaves Bitcoin to irrigate all altcoins. Now, investors must contend with a natural selection of the market, where only the most solid projects benefiting from substantial stablecoin liquidity can really take advantage of this new dynamic.