Altcoins regain ground, but this time, the scenario seems different. Historically, each altseason was triggered by a rotation of Bitcoin capital to alternative cryptos, which led to a generalized flight of the market. However, according to Ki Young Ju, CEO of cryptocurrency, this cycle could be changing. He claims that the current dynamics are not based on a leak in the dominance of Bitcoin, but on liquidity flows from Stablecoins. An unprecedented situation that could redefine the trajectory of the cryptos market.
An altcoin market worn by stablecoins
Ki Young Ju's Declaration is a major change in understanding Crypto cycles. “The dominance of Bitcoin no longer defines the Altseason. It is now the volume of trading that counts ”, explain-Al in a publication on February 21, 2025 on the social network X (formerly Twitter). Indeed, unlike the previous patterns, where investors were directly moving their Bitcoin profits to altcoins, it is today the stablecoins holders who inject liquidity on the market.
The figures confirm this observation: the volume of altcoin transactions is now 2.7 times higher than that of Bitcoin, an indicator which testifies to a renewed interest in these assets. However, this dynamic does not affect the entire market in a homogeneous manner. The CEO of cryptocurrency tempers his optimism and underlines On February 21 on the X platform that it is a “very selective altseason” where “only a few altcoins display a real upward dynamic”. Thus, the absence of new fresh capital could limit the extent of the movement and prevent a generalized rise in power.
A changing market: between institutionalization of bitcoin and uncertainty on altcoins
The boom in Bitcoin ETF and the increased adoption of the assets by the institutions have changed the situation. Bitcoin is now evolving in a separate environment, decorrelated from that of altcoins. In addition, “Bitcoin has built its own institutional layer 2 through ETF, MSTR and funds, which makes a bridge to altcoins impossible”, noted Ki Young Ju on December 3, 2024 on the X platform. This transformation could permanently modify market dynamics and limit incoming flows to alternative cryptos.
Another key factor, the Stablecoins market, whose capitalization has climbed to 232 billion dollars, plays an increasingly central role in exchanges. These assets, often used as intermediaries between the Fiat and cryptos, facilitate rapid funding of altcoins. However, risks remain: some blockchains like Solana undergo turbulence, in particular because of a 40 % collapse of user activity due to rugs and fraudulent maneuvers. An instability that could hinder a real Bull Run of Altcoins.
If the increase in trading volumes on altcoins is a renewed interest, the question of the sustainability of this trend remains open. The absence of external capital and the growing institutionalization of Bitcoin could limit the extent of the phenomenon. In this context, only a few selected projects are doing well, while others have capital outings related to the risks inherent in the market. This beginning of Altseason is therefore more nuanced than it seems. It is no longer a binary cycle where money leaves Bitcoin to irrigate all altcoins. From now on, investors must deal with a natural selection of the market, where only the strongest projects which benefit from a substantial stablecoin liquidity will really be able to take advantage of this new dynamic.
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