Altcoin Surge: Bitcoin's Stable Dominance

CryptoQuant CEO Ki Young Ju has sparked debate in the crypto community by declaring that "alt season has begun." While many have been eagerly awaiting a resurgence in altcoin prices, Ju argues that this cycle is different from previous ones. Is this a genuine alt season, or something else?

Trading volumes tell a story. According to Ju, altcoin trading volume is approximately 2.7 times that of Bitcoin. Traders are increasingly favoring altcoins like Ethereum (ETH) and Solana (SOL) over Bitcoin, indicating a shift in interest. This trend is evident in the trading volumes on crypto exchanges, with altcoin volumes often outpacing Bitcoin's.

Historically, altcoin seasons were characterized by a decline in Bitcoin dominance as investors transferred profits from BTC into altcoins. However, Bitcoin dominance has been relatively stable, currently at around 58%, suggesting a different type of altcoin season is unfolding. Ju argues that trading volume, rather than Bitcoin dominance, is the key indicator of altcoin interest.

Stablecoins have taken center stage in this altcoin season. Instead of rotating profits from Bitcoin into altcoins, stablecoin holders are directly purchasing altcoins using stablecoins like Tether (USDT) and USD Coin (USDC). This trend has accelerated as stablecoin market capitalizations have surged, reaching around $232 billion as of February 21, 2025.

However, this alt season is highly selective. Ju warns that only a few coins are pumping, and there is a lack of fresh liquidity entering the broader crypto market. Investors must do thorough research to identify altcoins with strong fundamentals, unique technology, and growing user adoption. The decoupling of Bitcoin from the wider crypto market further emphasizes the need for altcoins to establish their own ecosystems and use cases.

The debate surrounding this alt season is ongoing. Some in the crypto community question whether a "selective" alt season can truly be considered an alt season. Regardless of the classification, this alt season is fundamentally different from previous cycles. As the crypto landscape evolves, investors must adapt and rethink their strategies.

In this selective market, individual investors are expected to conduct thorough research to identify relevant altcoins. Projects with solid fundamentals, expanding user bases, and clear use cases are more likely to succeed. While the