CryptoQuant CEO Ki Young Ju stated that the altcoin market is no longer driven by Bitcoin asset rotation but by stablecoin and fiat currency trading pairs, breaking the previous framework of Bitcoin asset rotation.
Today, CryptoQuant CEO Ki Young Ju tweeted that the altcoin season is no longer defined by asset rotation from Bitcoin. He mentioned:
"The surge in altcoin trading volume is not driven by BTC trading pairs but by stablecoin and fiat currency pairs, reflecting actual market growth rather than asset rotation. Stablecoin liquidity better explains the altcoin market."
Increase in stablecoin issuance
The role of stablecoins in the market is becoming increasingly important, especially with the large issuance and circulation of USDT, indicating a strong demand for liquidity. Recent data shows that since 2020, the total market value of stablecoins (green line) has steadily increased and is expected to reach $180 billion in 2024, a significant rise from $120 billion a year ago. Particularly, after Trump's election, the growth rate of stablecoins has noticeably accelerated since November 7 of this year.
Community discussion hotspots
A lively discussion has emerged on this phenomenon. Some users believe that Bitcoin's market dominance is declining, which is closely related to the growth of altcoin trading volume; others predict that when Bitcoin trading pairs become active again, altcoin trading volume may double.
Additionally, there are views that more and more new investors are choosing to hold stablecoins directly or enter the altcoin market, rather than prioritizing the purchase of Bitcoin. They typically wait for the Bitcoin price to rebound before transferring funds to the Bitcoin market.
Which altcoins have surged?
Recently, in this month, well-known altcoins such as XRP, SOL, DOGE, and PEPE have shown strong performance with significant price increases.
This month's price increases on Binance
This month sorted by increase:
XRP: Increased from $0.511 to $2.45, an increase of approximately 379.84%.
ADA: Increased from $0.356 to $1.15, an increase of approximately 223.60%.
DOGE: Increased from $0.16 to $0.437, an increase of approximately 173.13%.
The Sandbox: Increased from $0.245 to $0.643, an increase of approximately 162.45%.
PEPE: Increased from $0.00000893 to $0.00002088, an increase of approximately 133.79%.
SOL: Increased from $166 to $228, an increase of approximately 37.37%.
