CryptoQuant founder and CEO Ki Young Ju noted that the upcoming altcoin season will be different from the usual.
He stated on Twitter that this period will be both challenging and unusual, and that it will only be profitable for a “select few” altcoins.
Lack of market sentiment and liquidity
Ki Young Ju emphasized that market sentiment is positive but there is no new liquidity entering the market. This indicates that movements in the altcoin market may remain more limited compared to previous cycles.
“Bitcoin is moving away from the crypto ecosystem,” Ki said, adding that Bitcoin has created a paper-based “Layer 2” ecosystem through ETFs, companies like MicroStrategy (MSTR), and funds. He stated that this new system breaks the traditional bridge that associates Bitcoin with altcoins.
The future of altcoins
Ki Young Ju noted that altcoins can achieve long-term success by adopting one of two strategies:
Creating Paper-Based Versions: Like Bitcoin’s ETF model, altcoins can create paper-based products that investors can access through traditional financial instruments.
Building a Real Internet Money Ecosystem: Building an internet money ecosystem using altcoins, stablecoins, or Bitcoin. This approach can form the basis of a system that users can use directly for daily transactions.
Warning to altcoin investors
Ki Young Ju emphasized that investors should identify projects that focus on one of these two strategies and that it is important to take long-term positions in these projects. “Altcoins used to move depending on their correlation with Bitcoin, but this pattern has now been broken,” he said. He stated that projects that can attract new liquidity and create an independent trend will come to the fore.
Stay tuned.
