Altcoin Season Has Officially Begun, Driven by Stablecoin Holders

The highly anticipated altcoin season has finally begun, but it’s not quite what many expected. According to Ki Young Ju, CEO and Founder of CryptoQuant, the season is defined by trading volume, not the shift of capital from Bitcoin to altcoins.

Stablecoin Holders Drive Interest in Altcoins

Ju pointed out that altcoin CEX trading volume is currently 2.7 times that of Bitcoin, stating that “BTC Dominance no longer defines alt season—trading volume does.” This suggests that stablecoin holders are now the primary drivers of interest in altcoins.

However, Ju cautions that it’s a “very selective alt season,” urging investors to do their own research (DYOR). This means that not all altcoins will experience a surge in interest and value.

What Does This Mean for the Market?

Traditionally, altcoin season is thought to begin when Bitcoin dominance declines, with capital flowing into altcoins as a result. However, this time around, it’s a different story.

The CMC Altcoin Season Index tracks whether the market is in altcoin or Bitcoin season by comparing the performance of the top 100 cryptocurrencies over the last 90 days. As of now, the index stands at 29, indicating that we’re still very much in the Bitcoin season.

Tips for Investors

With the altcoin season now underway, here are some tips for investors:

  • Do your own research (DYOR) before investing in any altcoin.
  • Keep an eye on trading volume and market trends.
  • Be selective and cautious when choosing which altcoins to invest in.

For more news and updates on the world of cryptocurrencies, stay tuned to Global Crypto News.

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