Altcoin season is finally here, declared by CryptoQuant CEO Ki Young Ju. However, this season is playing out differently than expected, with stablecoin holders driving selective altcoin gains in a market constrained by liquidity.
In a recent post on social platform X, Ju announced the start of alt season, pointing to a significant surge in altcoin trading volumes, now surpassing Bitcoin's volume by 2.7 times. Nonetheless, Ju emphasized that this rally is not widespread, describing it as a "very selective alt season" where only a few coins are experiencing notable price increases.
This trend aligns with Ju's previous warnings about the altcoin market being a zero-sum game, with capital shifting among assets rather than flowing in as new investments. He had predicted earlier that this alt season would be unique and challenging, favoring specific assets that are attracting fresh liquidity and showing independent trends.
While some traders are optimistic about the current market conditions, not everyone is convinced. Some users on X questioned Ju's definition of alt season, highlighting that the usual metrics do not seem to apply to the current scenario.
There is also speculation within the crypto community regarding China's recent fiscal policies and their potential impact on global liquidity, which could benefit the crypto market. However, experts caution that China's actions do not involve injecting new capital but rather a recalibration of existing funds.
Despite the uncertainties surrounding the market, certain altcoins like SEI, SUI, ZK, and IP have shown strong performance, indicating the emergence of new narratives in the space. The evolving dynamics of the crypto market suggest a shift away from traditional alt season metrics, with altcoins seeking to establish unique narratives and utility to attract investment.
Overall, the crypto landscape is evolving, with altcoins carving out their paths and investors adapting to a changing market influenced by factors like liquidity, institutional funding, and shifting global economic policies.