The altcoin market is surging, but according to CryptoQuant founder Ki Young Ju, this altseason will differ from what traders and investors anticipated.
Current Altcoin Market Dynamics
Despite multi-year highs for some cryptocurrencies, Ju predicts that only a handful of assets will see significant gains. He highlights positive market sentiment, but the lack of substantial fresh liquidity could hinder the growth of most crypto assets.
Characteristics of the Altseason
Traditionally, altseason is marked by capital flow from Bitcoin to other cryptocurrencies. However, Ju thinks this time it will be different due to the development of a paper-based Bitcoin layer-2 entity. The lack of bridges to altcoins means only those currencies that attract independent new liquidity will thrive. Ju also noted that the surge in altcoin trading volumes is driven by stablecoin and fiat pairs, not Bitcoin pairs.
Following Bitcoin’s Path
Ju's opinion is mirrored by market dynamics, where tokens like XRP and LINK have risen significantly contrary to most large-cap altcoins. Ju asserts that altcoins now have the choice to build a real internet money ecosystem using stablecoins and Bitcoin or create paper-wrapped versions.
The current altseason signifies a shift in traditional market understanding, and investors should be prepared for unpredictable changes and choose suitable long-term investment strategies.
