CryptoQuant Signals Potential Altcoin Season as Trading Volume Rises

According to CryptoQuant data released on February 20, the 90-day moving average of altcoin trading volume on centralized exchanges has increased since mid-November, suggesting a possible start of an altcoin season. The trading volume ratio of altcoins compared to Bitcoin rose from 1.77 to 2.77. CryptoQuant CEO Ki Young Ju noted that stablecoin holders are favoring altcoins, with altcoin volume being 2.7 times that of Bitcoin. However, trading is concentrated on Ethereum, XRP, BNB, and Solana. Despite the rising altcoin/BTC trading volume ratio, the aggregated altcoin trading volume for stablecoin pairs remains steady, except for a $60.4 billion peak on February 3. Ki Young Ju had warned in December that this bull cycle's alt-coin season would be "weird and challenging" due to insufficient liquidity, with only a few altcoins expected to soar. As of February 21, the average crypto market year-to-date performance stands at negative 24.9%, with 59% of the altcoin market registering losses above this threshold.