Altcoin Season: The Grand Debut of the Uninvited Guests! 🎭

Ah, mesdames et messieurs! The illustrious CEO of CryptoQuant, the esteemed Ki Young Ju, proclaims with great fanfare that the much-anticipated altcoin season has graced us with its presence! But lo and behold, it is not the grand migration of capital from Bitcoin to altcoins that heralds this season; nay, it is the stablecoin holders, those merry mischief-makers, who now lead the charge into the realm of altcoins! 🎉

Our dear Ju, with a flourish, declares that the trading volume of altcoins now dances at a staggering 2.7 times that of Bitcoin! “BTC Dominance?” he scoffs, “It is but a shadow of its former self! Trading volume reigns supreme!” Oh, what a twist in our tale! 📈

Alt season has begun.

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.

It’s a very selective alt season tho. DYOR.

— Ki Young Ju (@ki_young_ju) February 21, 2025

Traditionally, one might think that altcoin season commences when Bitcoin’s dominance wanes, with capital flowing like a river into the arms of altcoins. The CMC Altcoin Season Index, that fickle friend, measures whether we are in the embrace of altcoins or still under Bitcoin’s watchful eye. Alas, as of this very moment, the index stands at a mere 29, indicating that we are still firmly in the clutches of Bitcoin season! 🥴

Whispers of the impending altcoin season began to swirl when the CMC Altcoin Season Index reached a tantalizing 64 in December 2024. And yet, the so-called “January effect,” which typically brings forth a bountiful harvest of altcoin activity, has proven to be a mere mirage, as the index has languished just above 40, now sinking further to 29. Oh, the irony! 😅

Could it be that the delay in our altcoin festivities is due to the overwhelming influx of new tokens? Our astute co-founder of CoinGecko, Bobby Ong, reveals that over 600,000 tokens were birthed in January alone, spreading liquidity thinner than a pancake at a French café! This saturation, dear friends, has left altcoin performance gasping for breath, as investors flit about like butterflies, shifting their capital among a dizzying array of new tokens. 🦋

2/ Back in 2022-2023, around 50k new tokens were minted every month.

Fast forward to Q4 2024, and we’re seeing 400k new tokens/month – with January 2025 hitting a record 600k new tokens created per month! 🤯

That’s 12x growth in just over a year.

— Bobby Ong (@bobbyong) February 14, 2025

And yet, dear audience, the wait may soon be at an end! Ki Young Ju, with a twinkle in his eye, assures us that the altcoin season is upon us, albeit a “very selective” one. He implores investors to “Do Your Own Research,” lest they find themselves lost in the labyrinth of tokens! 🕵️‍♂️

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2025-02-21 16:12