The altcoin market is undergoing significant changes: trading patterns and market structure are evolving rapidly.
Changes in Altcoin Trading
According to data and insights from CryptoQuant CEO Ki Young Ju, the traditional concept of an 'altcoin season', where capital rotates from Bitcoin into altcoins, is outdated. Instead, the surge in altcoin trading volume is driven by stablecoin and fiat pairs, reflecting real market growth rather than asset rotation.
Bitcoin Trading Volume Decline
The declining volumes of Bitcoin trading pairs signal a shift in crypto market dynamics since 2022. This suggests a deeper, more sustainable evolution in the crypto market, driven by the increased liquidity and stability that stablecoins provide.
Impact of Fiat Pairs
Fiat pairs retain relevance during rallies but give way to the dominance of stablecoins during regular trading times, making stablecoins a pivotal pillar in altcoin trading.
The shift in altcoin trading towards stablecoins and fiat currencies highlights changes in market participant priorities and strategies, potentially signaling a more sustainable development in the crypto world.
