CryptoQuant's CEO, Ki Young Ju, is challenging the conventional concept of Altcoin Season by asserting that the traditional capital flow patterns leading to altcoin rallies are no longer effective in today's market landscape.
According to Ju, evolving crypto regulations and increased institutional adoption have reshaped how capital moves within the crypto sector, disrupting the historic surge of smaller altcoins that typically defined Altcoin Season.
In a recent social media post, Ki likened the outdated altcoin season cycle to a vanishing rainy season, emphasizing the obsolescence of the old capital flow model due to changing market dynamics. He emphasized that the influx of new capital now predominantly favors stablecoins and established altcoins, rather than smaller, speculative tokens.
While acknowledging liquidity challenges and declaring an altcoin season on the horizon, Ju forecasted a future characterized by a "selective altseason," where only a handful of altcoins would reap the benefits of evolving market trends. He identified critical factors believed to drive altcoin performance moving forward, such as potential ETF approvals, sustainable growth drivers, and revenue-generating projects.
Contrary to prior cycles where most altcoins experienced substantial price surges, Ki emphasized that the era of universal price pumps is over, promoting a more discerning approach to altcoin investments.
Recent market data aligns with Ju's assessment, showcasing altcoins outperforming Bitcoin in terms of crypto inflows. Notably, established altcoins with solid fundamentals like XRP, Solana (SOL), and Ethereum (ETH) attracted significant investor interest, indicating a preference for stability over speculative tokens.
Amid ongoing liquidity challenges, Ki characterized the current market environment as a competitive redistribution of capital among assets rather than an influx of new liquidity. This underscores the increasing role of institutional investors in shaping the crypto space, potentially signaling the end of retail-driven altcoin surges in favor of more stable, established assets.