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The altcoin market is currently on a roll, with several cryptocurrencies skyrocketing to multi-year highs, but Ki Young Ju, the founder and CEO of blockchain analytics platform CryptoQuant, believes this altseason will not play out as traders and investors expected.<\/p>\n
In an X post, Ju insisted<\/a> that this altcoin season will be \u201cweird and challenging\u201d because only a few chosen assets will record significant gains and \u201cwin the game.\u201d According to the CryptoQuant founder, the altcoin market sentiment is good, but the sector is not seeing a notable inflow of fresh liquidity, and this could hamper the growth of most crypto assets.<\/p>\n The altseason refers to when capital flows from bitcoin (BTC) to other cryptocurrencies. During this time, BTC retraces its steps and consolidates within a particular range, its dominance and market share declining, while altcoins skyrocket and possibly hit new highs.<\/p>\n From Ju\u2019s perspective, BTC is drifting away from the crypto ecosystem and developing its own paper-based layer-2 entity. The CryptoQuant CEO said this development is being pushed by Bitcoin spot and futures exchange-traded funds (ETFs<\/a>) and the stocks of Bitcoin-friendly companies like MicroStrategy<\/a> (MSTR).<\/p>\n Unfortunately, bridging from the paper-based L2 Bitcoin ecosystem to altcoins is impossible.\u00a0Ju explained that altcoins used to move together due to their correlation with BTC; however, that pattern has broken, and only a handful of cryptocurrencies are showing independent traits because they are attracting new liquidity.<\/p>\n \u201cAlt season is no longer defined by asset rotation from #Bitcoin. The surge in altcoin trading volume isn\u2019t driven by $BTC pairs but by stablecoin and fiat pairs, reflecting real market growth rather than asset rotation,\u201d the crypto analyst clarified in a separate tweet<\/a>.<\/p>\n<\/blockquote>\n The CryptoQuant founder\u2019s opinion is substantiated by altcoin market dynamics over the past 24 hours. While most large-cap altcoins have been in the red, others, like Ripple\u2019s native token, XRP<\/a>, and Chainlink (LINK<\/a>), have skyrocketed to levels not seen in years.<\/p>\n Meanwhile, Ju asserted that altcoins now have two options: build a real internet money ecosystem using stablecoins and BTC or create paper-wrapped versions like Bitcoin. He then suggested that altcoin investors find cryptocurrencies that can work on one of the two options and hold them long-term.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\nAltseason to Play Out Differently<\/h2>\n
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Following Bitcoin\u2019s Path<\/h2>\n
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