Altcoins are gaining traction once again, but this time the situation is different. According to CryptoQuant CEO Ki Young Ju, the current market dynamics rely on liquidity flows from stablecoins, not Bitcoin dominance.
Stablecoin-Driven Altcoin Market
Ki Young Ju’s statement indicates a major shift in understanding crypto cycles. He explains that Bitcoin dominance no longer defines the market; now, it is the trading volume that matters. Unlike previous patterns of direct shifts from Bitcoin, stablecoin holders are injecting liquidity into the market.
Market Changes: Bitcoin Institutionalization and Altcoin Uncertainty
The market has evolved with the rise of Bitcoin ETFs and increased institutional investment, creating a distinct environment separated from altcoins. Ki Young Ju points out that Bitcoin's institutional Layer 2 through ETFs and funds makes integration with altcoins impossible.
Future of Altcoins: Challenges and Hopes
While increased trading volumes in altcoins reflect renewed interest, the sustainability of this trend remains in question. The lack of external capital and growing institutionalization of Bitcoin could limit the market's overall expansion.
The current cycle for altcoins is different from previous ones: it's not just a capital shift from Bitcoin, but an unstable movement supported by stablecoin liquidity. Only a few projects can benefit from these changes.
