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Altseason or Just a Mirage? Analysts Debate the Future of Altcoins
The crypto market is witnessing an unexpected turn as analysts engage in a heated debate about whether the long-awaited altcoin season has begun or is merely delayed. The notion that Bitcoin’s (BTC) price surge and the growth of decentralized finance (DeFi) have stalled the inevitable rise of alternative assets has sparked intense discussions among traders and investors.
According to Ki Young Ju, CEO of CryptoQuant, a selective altcoin season has already commenced. In a recent tweet, Ju pointed out that while there is no direct rotation into altcoins from Bitcoin, stablecoin holders are increasingly favoring alternative assets. This trend is evident in trading volumes, as altcoins are currently experiencing 2.7 times the volume of Bitcoin. Moreover, he emphasized that BTC’s dominance – historically a key indicator of altseason – no longer holds the same influence. Trading activity has become a more relevant metric in determining market behavior.
On the other hand, Crypto analyst Xremlin posits that an altcoin rally is likely to occur in 2025 but may not follow the traditional February start seen in previous cycles. Instead, historical data suggests two potential peaks: one in May-June and another in August-September. Xremlin attributes the delayed altseason to the significant changes occurring within the market.
Unlike previous cycles where Bitcoin whales took profits and flowed them into altcoins, much of BTC’s current strength is ETF-driven. This means that funds are effectively locked and unable to be rotated into alternative assets. Furthermore, the massive increase in token supply, multiple times more than in 2021, has spread out demand and prevented a concentrated altcoin rally.
Another significant shift has been the rise and decline of meme coin speculation, which altered retail investor behavior. While the 2021 altseason was driven by long-term bets on technology and innovation, Xremlin believes that today’s market favors quick flips over sustained holding. However, despite these challenges, he remains optimistic due to a highly favorable macro environment.
The analyst highlights the potential for sectors like Real World Assets (RWA) and AI-related projects to experience significant gains in the near future.
Source: cryptopotato.com
