3 Major Factors Affecting Altcoin Performance, CryptoQuant CEO Reveals This!

Jakarta, Pintu News – Ki Young Ju, CEO of CryptoQuant, provides a perspective that updates our understanding of the altcoin season.

With the dynamics changing due to regulation and adoption by institutions, the distribution of funds in the crypto market has transformed, giving rise to an era where only a handful of altcoins will shine.

Check out the full news below!

Transformation of Altcoin Season

According to Ki Young Ju, the traditional mechanisms that fueled altcoins’ rise have changed. Through a post on X (formerly Twitter), he described the old altcoin season as a phenomenon that has now passed.

Ju explained that the fund rotation that used to be led by Bitcoin BTC->Current BTC PriceRp 0Market Cap-Trading Volume-Circulating Supply- no longer applies in the same way due to the heavy influence of institutional players and changes in regulation.

Currently, funds tend to flow into stablecoins or altcoins with wider acceptance rather than smaller speculative tokens. Ju asserts that the era of random altcoin price increases is over.

He predicts a “selective altcoin season,” where only a few altcoins will benefit from the new market dynamics. This is a significant change from previous cycles, where almost all altcoins enjoyed significant price increases.

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Key Factors that Will Affect Altcoins in the Future

In his analysis, Ki Young Ju identified three main factors that will affect the performance of altcoins in 2025.

First, the possible approval of exchange-traded funds (ETFs) for altcoins could open up access for institutional investors.

Secondly, attention to sustainability will be important to maintain interest in a particular altcoin.

Third, revenue-generating projects will be prioritized over those based solely on speculation. He added that “most altcoins will probably not succeed,” signalling a shift from previous cycles.

This suggests investors prefer altcoins with a strong fundamental base, such as Ethereum ETH->Current ETH PriceRp 0Market Cap-Trading Volume-Circulating Supply- and Solana SOL->Current SOL PriceRp 0Market Cap-Trading Volume-Circulating Supply-, rather than smaller, speculation-based tokens.

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Market Trends Favoring Selective Altcoin Season

Recent market trends support Ki’s view of a selective altcoin season. According to a report from BeInCrypto, altcoins surpassed Bitcoin (BTC) in crypto inflows last week.

Data from CoinShares showed that Bitcoin (BTC) saw outflows of $571 million. In comparison, altcoins such as Ripple XRP->Current XRP PriceRp 0Market Cap-Trading Volume-Circulating Supply- led the inflows with $38.3 million, largely due to speculation regarding a potential ETF approval. Ki Young Ju also highlighted the liquidity challenges that the crypto market is facing.

He described this situation as a “PvP fight,” where funds are redistributed among assets rather than adding new liquidity to the market. This suggests institutional funds gradually shape the sector, favouring stability over speculative surges.

Conclusion

The changes taking place in the crypto market have started a new era. A selective altcoin season, influenced by factors such as institutional adoption and stricter regulation, promises a different future for crypto investments. Savvy investors will need to adjust their strategies to capitalize on opportunities in this new trend.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. Redefining Altcoin Season: CryptoQuant CEO. Accessed on February 26, 2025
• Featured Image: Generated by AI