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CEO of CryptoQuant, says that the much-anticipated altcoin season has begun, but it’s defined by trading volume—not the shift of capital from Bitcoin to altcoins.

According to Ki Young Ju, CEO and Founder of CryptoQuant, altcoin season has officially begun. However, it’s not because the capital has shifted from Bitcoin to altcoins. Instead, stablecoin holders are now the primary drivers of interest in altcoins. Ju pointed out that altcoin CEX trading volume is currently 2.7 times that of Bitcoin, stating that “BTC Dominance no longer defines alt season—trading volume does.” 

Conventional view says that altcoin season starts when Bitcoin dominance declines, with capital flowing into altcoins as a result. The CMC Altcoin Season Index tracks whether the market is in altcoin or Bitcoin season by comparing the performance of the top 100 cryptocurrencies over the last 90 days. When 75% or more of these altcoins outperform Bitcoin, the market is considered to be in altcoin season. However, the CMC index stands at 29 as of the time of writing, indicating that we’re still very much in the Bitcoin season. 

Whispers about the looming altcoin season began when the CMC Altcoin Season Index hit 64 in Dec. 2024. Moreover, the so-called “January effect” typically brings a surge in altcoin activity. However, the index has failed to rise much since the beginning of Jan., staying just above 40 and now dropping further to 29.

The delay in the altcoin season may have been the result of the increasing number of new launches in the market. Bobby Ong, co-founder of CoinGecko, noted more than 600,000 tokens were created in Jan. alone, spreading liquidity thin across a growing pool of assets. This saturation was affecting altcoin performance, as investors were actively shifting their capital between a wide range of new tokens.

That being said, the wait seems to be over, at least according to Ki Young Ju, although he cautions that it’s a “very selective alt season,” urging investors to DYOR.