The Thai crypto market is currently witnessing the onset of alt season, as per insights shared by Ki Young Ju, the CEO of CryptoQuant. This event, long awaited by traders and investors alike, marks a notable shift from past alt seasons.
Traditionally, alt season initiated when trading liquidity transitioned from Bitcoin to other cryptocurrencies. This time, Young Ju highlights it's different. Instead of Bitcoin leading the charge, the current alt season is predominantly influenced by stablecoin holders, setting this period apart from previous cycles.
According to Young Ju, altcoin trading volumes now exceed those of Bitcoin by a staggering factor of 2.7. This dramatic increase demonstrates how Bitcoin dominance is no longer the sole indicator of market movements. "Alt season is special this time as it’s driven by stablecoin holders instead of the typical Bitcoin cycling," Young Ju stated, reinforcing the emergent dynamics reshaping the trading environment.
The arrival of Bitcoin ETFs and other financial products aimed at institutional investors has markedly influenced market behaviors. Young Ju argues these products act more like ‘layer 2 on paper’ than on genuine blockchain technologies. "The arrival of Bitcoin ETFs acts more as 'layer 2 on paper' than on actual blockchains like Wrapped Bitcoin on Ethereum. This detachment from Bitcoin is observable," he explained, indicating how these adjustments are impacting investor strategies and overall market sentiment.
While the growth of alt season seems promising, Young Ju warns investors of potential pitfalls. "This alt season will be more selective, with limited projects likely to see price surges. Incoming liquidity is less than before," he noted. This emphasis on selectivity implies only specific altcoins may thrive during this period, requiring investors to be judicious about where they place their funds.
The surge in stablecoins alongside rising altcoin volumes suggests substantial changes are brewing beneath the surface of the crypto ecosystem. After Trump reclaimed the U.S. presidency, financial institutions, including Citi, project widespread adoption of stablecoins could catalyze positive performance among altcoins as the market shifts toward alternative assets.
Despite the optimistic outlook, there also exist concerns related to altcoins’ inherent volatility—an issue exacerbated by frequent incidents of rug pulls, especially within meme coins on platforms like Solana. Such events have understandably caused wariness among investors, who are increasingly cautious about re-entering the market. Many investors now prefer to sidestep these risks, abandoning previously popular networks for safer alternatives.
Overall, this burgeoning alt season reflects broader changes within the crypto market. Understanding the motivations behind these dynamics—like the role of stablecoins and institutional interest—will be key for investors as they navigate this unique period filled with opportunities as well as challenges.