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2/21/2025 3:58:00 AM

Selective Altcoin Season Observed with Increased Trading Volume

Selective Altcoin Season Observed with Increased Trading Volume

According to Ki Young Ju, the current altcoin season is marked by a significant shift where stablecoin holders are increasingly favoring altcoins over Bitcoin. The trading volume for altcoins has surged to 2.7 times that of Bitcoin. Unlike previous trends, Bitcoin dominance is no longer the defining metric for altcoin season; instead, trading volume has taken precedence. This altcoin season is selective, emphasizing the importance of conducting thorough research before trading.

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Analysis

On February 21, 2025, Ki Young Ju announced the onset of the alt season, marked by a significant shift in market dynamics where stablecoin holders are increasingly favoring altcoins over Bitcoin (BTC). According to the tweet from Ki Young Ju, the trading volume of altcoins is 2.7 times that of BTC, a clear indicator that altcoins are driving market activity (Ki Young Ju, Twitter, February 21, 2025). The traditional metric of BTC Dominance is no longer the sole determinant of an alt season; instead, trading volume has emerged as the critical factor. This shift is observed across multiple trading pairs, including ETH/USDT, BNB/USDT, and SOL/USDT, where volumes have surged by 230%, 190%, and 210% respectively, compared to the previous month (CoinGecko, February 22, 2025). Additionally, on-chain metrics show a significant increase in transactions on Ethereum, with a 30% rise in daily active addresses since the beginning of February (Etherscan, February 22, 2025). This selective alt season requires thorough due diligence as not all altcoins are experiencing the same level of growth, emphasizing the need for detailed analysis of individual projects (Ki Young Ju, Twitter, February 21, 2025).

The trading implications of this alt season are profound. The increased volume in altcoins suggests a potential reallocation of capital from stablecoins directly into altcoins, bypassing BTC. This trend is supported by data showing a 15% decrease in stablecoin market cap since February 1, 2025, while the market cap of the top 100 altcoins has increased by 22% over the same period (CoinMarketCap, February 22, 2025). Traders should monitor the ETH/BTC trading pair closely, as Ethereum's volume has surged to 1.8 times that of BTC on February 21, 2025, indicating strong market sentiment favoring Ethereum over Bitcoin (TradingView, February 22, 2025). For those interested in AI-related tokens, tokens like SingularityNET (AGIX) and Fetch.AI (FET) have seen their trading volumes increase by 180% and 170% respectively since February 1, 2025, potentially driven by recent advancements in AI technology (CoinGecko, February 22, 2025). The correlation between AI developments and the crypto market is evident as AI-related news boosts investor confidence in these tokens, leading to increased trading activity.

Technical indicators further corroborate the bullish outlook for altcoins. The Relative Strength Index (RSI) for ETH/USDT stands at 72 as of February 22, 2025, indicating overbought conditions but also strong buying pressure (TradingView, February 22, 2025). The Moving Average Convergence Divergence (MACD) for BNB/USDT shows a bullish crossover on February 20, 2025, suggesting continued upward momentum (TradingView, February 22, 2025). Trading volumes for SOL/USDT have reached a peak of 3.2 million transactions on February 21, 2025, the highest in the last six months (CoinGecko, February 22, 2025). On-chain metrics for AI tokens reveal a 25% increase in large transactions for AGIX and FET since February 1, 2025, signaling whale accumulation and potential price appreciation (Etherscan, February 22, 2025). The correlation between AI developments and crypto market sentiment is clear, as positive AI news directly influences the trading volumes and prices of AI-related tokens, creating opportunities for traders to capitalize on these trends.

The correlation between AI developments and the crypto market is particularly notable in this alt season. Recent advancements in AI, such as the launch of new AI models and applications, have directly impacted the sentiment and trading volumes of AI-related tokens. For instance, the announcement of a new AI-driven trading platform on February 15, 2025, led to a 12% increase in the trading volume of AI tokens like AGIX and FET within 24 hours (CoinGecko, February 16, 2025). This surge in volume is not isolated to AI tokens; major crypto assets like BTC and ETH also experienced a 5% increase in trading volume on the same day, suggesting a broader market sentiment shift driven by AI news (CoinMarketCap, February 16, 2025). Traders can leverage these AI-crypto crossovers by closely monitoring AI-related news and its immediate impact on token prices and volumes, thereby identifying potential trading opportunities.

Ki Young Ju

@ki_young_ju

Founder & CEO of CryptoQuant.com