The 90-day moving average of Altcoin trading volume in centralized exchanges has been rising since mid-November, potentially indicating the start of the Altcoin season. According to Cryptoquant.
Cryptoquant CEO and Founder Ki Young Ju Sharing the displayed data The trading volume ratio of altcoin compared to Bitcoin (BTC) has increased from 1.77 to 2.77 as of February 20th.
ki Highlighted This potentially indicates that “Alt season has begun.” The ALT season is a period when Altcoins prices skyrocket compared to BTC.
He added:
“There is no direct ALT spin from BTC to ALT, but Stablecoin holders support ALT. The ALT volume is 2.7X BTC. BTC dominance no longer defines the Alt season – trading volumes do so Masu […] BTC is no longer an estimated currency. ”
However, data suggest that centralized exchange transactions are concentrated on the four largest Altcoins by market capitalization (ETHERE (ETH), XRP, BNB, and Solana (SOL)).
Despite the rising Altcoin/BTC trading volume ratio, the “aggregated Altcoin trading volume of Stablecoin pairs” remains stable, except for the $60.4 billion peak on February 3.
Selective altcoin season
In December, Ki warned his followers that this bull cycle's Alt-Coin season will be “strange and challenging” as it is insufficiently liquid to drive the entire sector. As a result, only a few altcoins will soar. He added that altcoins ready to gather at the new local high should follow one of two passes.
The first is to create a “paper wrap version” like Bitcoin. He mentions an ecosystem built around BTC through traditional investment vehicles such as exchange-traded funds (ETFs), strategy BTC acquisitions, and investment funds in BTC.
The second pass is to build a real distributed ecosystem using Stablecoins or BTC so that Altcoins are evaluated independently. In particular, recent reports on silkworms Highlighted Despite this value almost doubled from September to February 11th, the top 10 Altcoins by market capitalization account for 64% of the daily liquidity of all Altcoins daily.
Based on encrypted data, only three of the 22 Altcoin sectors registered positive yearly performance.
The average crypto market was 24.9% negative as of February 21, with 13 Altcoin sectors recording losses above this threshold, representing 59% of the Altcoin market.
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