'Alt Season Has Begun,' Expert Says, But Will Ethereum, XRP, Solana Benefit?

CryptoQuant CEO Ki Young Ju has confirmed that altcoin season has officially started, but he notes a major shift in market behavior compared to previous cycles.

What Happened: In a post on X on Friday, Ju stated, “Alt season has begun. No direct BTC-to-alt rotation, but stablecoin holders are favoring alts. Alt volume is 2.7x BTC.”

Unlike past alt seasons where Bitcoin BTC/USD dominance dictated capital flow into alternative cryptocurrencies, Ju argues that trading volume has now become the defining metric.

This shift highlights the increasing role of stablecoin liquidity in driving altcoin markets, rather than capital rotation from Bitcoin.

Ju points out that Bitcoin's function within the crypto ecosystem has evolved significantly.

Institutional adoption through ETFs, MicroStrategy MSTR holdings, and funds has effectively built a “paper-based Layer 2” ecosystem for Bitcoin, making it less connected to altcoin markets.

"Bitcoin is drifting away from the crypto ecosystem," Ju stated, explaining that BTC no longer serves as a bridge to altcoins in the same way it did in past cycles. This shift means altcoins must now attract their own liquidity, rather than relying on Bitcoin movements.

Also Read: Dave Portnoy Calls For A ‘Crypto Cleanup,’ But Here’s What Could Make That Tricky

Why It Matters: While the start of alt season is evident, Ju cautions that this cycle will be highly selective, favoring only certain projects. Unlike previous broad-based alt rallies, only a handful of altcoins will benefit, depending on their ability to create sustainable liquidity.

"Altcoins now have two options: create paper-wrapped versions like Bitcoin or build a real Internet money ecosystem using stablecoins or BTC," Ju advised, suggesting investors focus on projects that fit these models.

With Bitcoin no longer acting as a primary liquidity driver for altcoins, investors need to adjust their strategies.

The days of simple BTC-to-alt rotations appear to be over, replaced by a more fragmented, utility-driven altcoin market.

As trading volume—not Bitcoin dominance—emerges as the key indicator, altcoin investors must look for projects that demonstrate strong independent liquidity flows rather than relying on broader market trends.

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