Since mid-November the 90-day average trading volume of altcoins on central exchanges is up, possibly signaling a new altcoin trend. CryptoQuant.
Ki Young J, CEO of CryptoQuant and its founder. Sharing data is easy The trading volume of altcoins in comparison to Bitcoin (BTC), rose to 2,77 on February 20.
Ki highlighted The word “potential” could be interpreted as meaning: “alt season has begun.”The alt season is when prices for altcoins skyrocket compared with BTC.
Then he added:
“No direct BTC-to-alt rotation, but stablecoin holders are favoring alts. Alt volume is 2.7x BTC. BTC Dominance no longer defines alt season — trading volume does […] BTC isn’t a quote currency anymore.”
Data suggests, however, that centralized exchanges are concentrating their trading on four of the largest altcoins in terms of market capital: Ethereum (ETH), XRP (BNB), and Solana(SOL).
Even though the ratio between altcoin/BTC has risen, “aggregated altcoin trading volume for stablecoin pairs” The market is stable, with the exception of a peak in February at $60.4 billion.
Selective altcoin Season
In December, Ki warned his followers that this bull cycle’s alt-coin season would be “weird and challenging”Because there is not enough liquidity to drive the whole sector. Only a handful of altcoins are likely to soar. He said that altcoins which are poised to rise to new local heights will follow either of two directions.
First, we need to create. “paper-wrapped versions”Like Bitcoin. He’s referring to the ecosystem built around BTC through traditional investment vehicles, such as exchange-traded funds (ETFs), Strategy’s BTC acquisitions, and funds investing in BTC.
To ensure altcoins can appreciate on their own, the second option is to create a decentralized system using BTC and stablecoins. Noteworthy is a Kaiko news report that was published recently highlighted It is interesting to note that the 10 top altcoins, as measured by their market caps, account for 64% (of all daily altcoin liquidities) despite this amount nearly doubling between September and February 11,
CryptoSlate shows that, based on the data collected to date, only 3 out of 22 altcoin sectors have had positive performances.
As of February 21, the average performance of the crypto market for this year is negative 24.9%. 13 sectors of altcoins have losses that exceed this threshold. This represents 59% of altcoins.
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