The 90-day mobile average of the Altcoin trading volume on centralized scholarships has increased since mid-November, potentially signaling the start of an Altcoin season, According to the cryptochus.
The CEO and Cryptotic founder Ki Young Ju Shared data showing The commercial volume of altcoin volume compared to Bitcoin (BTC) went from 1.77 to 2.77 to February 20.
Ki highlighted That it potentially indicates that “the Alt season has started”. The Alt season is the period when altcoin prices are soaring compared to the BTC.
He added:
“No direct BTC-to-Al rotation, but stablecoin holders are favorable to the alts. The volume alt is 2.7x BTC. The domination of the BTC no longer defines the Alt season – the trading volume (…) BTC is no longer a quotation currency. »»
However, the data suggests that centralized exchange trading focuses on the four largest altcoins by market capitalization: Ethereum (ETH), XRP, BNB and Solana (soil).
Despite the increase in the Altcoin / BTC commercial volume ratio, the “volume of altcoin trading aggregated for stable pairs” remains stable, with the exception of a peak of $ 60.4 billion on February 3.
Altcoin selective season
In December, Ki warned his supporters that the Alt-Coin season of this bull cycle would be “strange and stimulating” because there is not enough liquidity to propel the entire sector. As a result, only a few altcoins will skyrocket. He added that the Altcoins which are ready to reach new local heights should follow one of the two paths.
The first is to create “versions wrapped in paper” like Bitcoin. It refers to the ecosystem built around the BTC through traditional investment vehicles, such as funds negotiated on the stock market (ETF), Acquisitions of the Strategy BTC and funds invested in the BTC.
The second path is to build a real decentralized ecosystem using Stablecoins or BTC to ensure that altcoins are as appreciated. In particular, a recent Kaiko report highlighted that the first 10 altcoins by market capitalization represent 64% of all the daily liquidity of Altcoin despite this value to double from September to February 11.
Based on cryptoslate data, only 3 of the 22 Altcoin sectors have recorded positive performance of the year up to date.
The average performance of the cryptography market of the year is negative at 24.9% on February 21, with 13 Altcoin sectors recording losses higher than this threshold, which is equivalent to 59% of the Altcoin market.
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