DIGIVESTASI - Altcoin Season Shows Promising Signs in Early December 2024, The long-anticipated altcoin season has begun to show tangible signs as early as December 2024, bringing renewed euphoria to the crypto market. This trend coincides with a surge in the value of most cryptocurrencies over recent months. According to data from blockchaincenter.net, the altcoin season index has reached 76, surpassing the 75-point threshold that indicates an official altcoin season. Altcoin season is defined as a period when 75% of the top 50 coins (excluding stablecoins and asset-backed tokens) outperform Bitcoin over a 90-day period.

Several altcoins have posted remarkable gains. Stellar (XLM) and Hedera (HBAR) have both surged by approximately 500% over the past 90 days. Meanwhile, Ripple (XRP) has achieved a significant 400% increase, surpassing the market capitalization of Solana and the stablecoin USDT. XRP’s current market cap stands at $152.47 billion, equivalent to approximately Rp2,416 trillion (with an exchange rate of Rp15,850 per USD).

Indicators of Altcoin Season

In addition to the altcoin season index, a decline in Bitcoin’s dominance also points to a shift in market dynamics favoring altcoins. Bitcoin dominance, which reflects the percentage of total crypto market capitalization represented by Bitcoin, fell from 61.18% on November 20, 2024, to 56.12% on December 2, 2024—a sharp drop within just two weeks.

However, Ki Young Ju, CEO of CryptoQuant, attributes this altcoin season to the growing liquidity of stablecoins rather than asset rotation from Bitcoin. In a post on the platform X, Ki explained that traditional altcoin seasons are often driven by Bitcoin trading pairs. This time, however, stablecoins and fiat currency pairs are the primary drivers of altcoin price movements.

The Role of Stablecoins in Altcoin Growth

Ki emphasized that the increased use of stablecoins is injecting fresh capital into the altcoin market, accelerating price growth. Data reveals that trading volume for altcoins paired with Bitcoin has remained low in recent weeks, despite an uptick in Ether (ETH). In contrast, trading volumes for altcoin-stablecoin pairs have surged alongside ETH’s price gains, reflecting genuine market growth rather than simple asset rotation.

He also highlighted that the flow of capital in the crypto market differs from previous cycles. Whereas earlier bull markets were predominantly driven by retail investors, the current rally is largely fueled by institutional investments, particularly through Bitcoin exchange-traded funds (ETFs).

A More Stable Altcoin Season

While the signs of an altcoin season are becoming apparent, the total market capitalization of all cryptocurrencies excluding Bitcoin remains below its all-time high. This indicates that fresh liquidity from new exchange users is still limited. The current altcoin season is thus marked by a more stable and deliberate market structure rather than a speculative frenzy.

In conclusion, the ongoing altcoin season showcases a shift in market behavior, supported by stablecoin liquidity and institutional participation. While the overall market still has room to grow, the signs point to a more mature and sustainable phase of altcoin development.

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