Here’s why CryptoQuant’s CEO says this peak season won’t play out as expected

The altcoin market is currently on a roll, with several cryptocurrencies soaring to multi-year highs, but Ki Young Ju, the founder and CEO of blockchain analytics platform CryptoQuant, believes that another season will not will play out as traders and investors expected.

In an X post, Ju insisted that this altcoin season will be “strange and challenging” because only a select few assets will post significant gains and “win the game.” According to the founder of CryptoQuant, the sentiment in the altcoin market is good, but the sector is not seeing a noticeable inflow of fresh liquidity, and this could hamper the growth of most crypto assets.

Altseason to play differently

The altseason refers to when capital flows from bitcoin (BTC) to other cryptocurrencies. During this time, BTC retraces its steps and consolidates within a particular range, its dominance and market share decrease, while altcoins soar and possibly reach new highs.

From Ju’s perspective, BTC is moving away from the crypto ecosystem and developing its own paper-based Layer 2 entity. The CryptoQuant CEO said this development is being driven by Bitcoin spot and futures exchange-traded funds (ETFs) and shares of Bitcoin-friendly companies like MicroStrategy (MSTR).

Unfortunately, bridging from the paper-based L2 Bitcoin ecosystem to altcoins is impossible. Ju explained that altcoins used to move together because of their correlation with BTC; however, this pattern has broken and only a handful of cryptocurrencies are showing independent traits as they attract new liquidity.

“The alt season is no longer defined by #Bitcoin asset turnover. The rise in altcoin trading volume is not driven by $BTC pairs, but by fiat and stablecoin pairs, which reflect growth real market rather than asset turnover,” the crypto analyst clarified in a separate tweet.

Following the path of Bitcoin

The opinion of the founder of CryptoQuant is based on the dynamics of the altcoin market during the last 24 hours. While most large-cap altcoins have been in the red, others such as Ripple’s native token XRP and Chainlink (LINK) have soared to levels not seen in years.

Meanwhile, Ju stated that altcoins now have two options: create a real internet money ecosystem using stablecoins and BTC or create paper versions like Bitcoin. He then suggested that altcoin investors find cryptocurrencies that can work in one of two options and hold them for the long term.

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