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The cryptocurrency world often waits for the so-called “altcoin season” – a period when smaller cryptocurrencies start to rapidly increase in value, surpassing Bitcoin in terms of growth rate. However, Ki Young Ju, CEO of the analytics platform cryptoquant, argues that traditional indicators signaling this moment are no longer relevant. He points to changing market dynamics that will reward only selected projects.
What has changed in the altcoin market?
New Dynamics: Stablecoins and Fiat Currencies
Ki Young Ju points out that the old signal of the arrival of the altcoin season – the flow of capital from Bitcoin to other cryptocurrencies – is losing its significance. Currently, the key indicator is trading volumes in pairs with stablecoins and traditional fiat currencies. It is these data that better reflect the actual increase in interest in the market.
Institutional investors stick with Bitcoin
A large portion of the capital in the cryptocurrency market is currently controlled by institutional investors. As Ju notes, these institutions have shown little willingness to diversify their portfolios into altcoins. Most of their operations take place outside of traditional exchanges, which further limits the flow of capital into smaller assets.
New retail investors are key to success
Altcoins are dependent on retail capital inflows, which often drive rapid price increases. However, without fresh capital from new market participants, a price rally for many projects remains unlikely.
Do all altcoins have a chance of success?
According to Ju, the upcoming altcoin season will not affect all projects. Only those that:
- They offer unique value: Projects with real applications and innovative solutions have the greatest potential.
- Attract capital: Only altcoins that are able to gain the trust of investors can count on significant growth.
- Withstand market pressure: Projects with solid foundations have a better chance of surviving in volatile market conditions.
Ki Young Ju: “Not Every Coin Will Reach Its Peak”
Ju emphasizes that it is unrealistic to expect all altcoins to return to their all-time highs. He notes:
"Not every coin will reach its previous high. Only select coins will attract fresh capital."
In his opinion, the cryptocurrency market requires new ideas and innovative projects that will be able to attract the attention of investors and revitalize the market.
Is it worth investing in altcoins?
The decision to invest in altcoins should be based on a thorough analysis of the fundamentals of each project. It is important to understand which projects have the potential for long-term success and which are just short-term speculation.
Summary
The upcoming altcoin season could be one of the most selective in history. Instead of a surge in all the smaller cryptocurrencies, we’ll see clear differences in project performance. Only those that offer real benefits and the ability to attract investors have a chance at success.
If you are considering investing in altcoins, it is crucial to focus on projects with solid fundamentals and real-world applications. As Warren Buffett said:
“Investing is not guesswork, it is analysis and discipline.”
Consider whether you are ready to conduct such an analysis and bet on projects that can change the future of blockchain technology.
