Altcoins Gain Strength: Is a Market Shift Underway?
The cryptocurrency market appears to be entering a new phase, with growing interest in altcoins suggesting a potential shift away from Bitcoin’s dominance.
CryptoQuant CEO Ki Young Ju highlights a surge in stablecoin demand as a key signal that altcoins may be gaining momentum.
Bitcoin still commands a dominant market share, but its growth has slowed compared to altcoins, which are seeing increased trading activity. Young Ju argues that Bitcoin dominance is no longer the best indicator of an altcoin season, pointing instead to trading volume as a more relevant metric.
One of the biggest drivers behind this shift is the rising influence of stablecoins, which provide liquidity and facilitate altcoin trading. Data shows that altcoins are currently trading at a volume 2.7 times higher than Bitcoin, a trend that analysts believe could mark the early stages of an altcoin breakout.
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Ethereum is at the forefront of this rally, outperforming Bitcoin with a stronger price increase. Some experts view this as confirmation that the market is entering the second phase of an altcoin cycle, while others suggest that a decline in Bitcoin dominance could accelerate the trend further.
Historically, February has often been a turning point for altcoins, with past cycles showing strong upward movement around this time of year. Analysts, including Merlijn The Trader and Max Brown, believe the pattern could repeat, potentially setting the stage for a significant rally in the coming weeks.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
