CryptoQuant CEO Ki Young Ju says the classic altcoin rotation pattern is fading, a shift that could change how altcoins move in the next phase of the cycle. According to him, the mechanism relied on profits from Bitcoin flowing into smaller tokens, sparking broad-based rallies across the market.
However, new data suggests that this pattern is weakening. BTC-pair altcoin trading volume has dropped to post-2021 lows, and the altcoin market appears more concentrated, with fewer large-cap tokens commanding most of the sector's value.
This concentration could delay or limit broad 'altseason' style moves. Young Ju argues that narrative-only momentum is no longer enough to sustain attention across the board. He believes that stronger activity is tied to areas with clearer business models and real-world utility, such as decentralized finance, stablecoins, tokenized real-world assets, and AI agent-related applications.
Bitcoin dominance could also be a near-term headwind for altcoin momentum. The source cites Bitcoin dominance showing early signs of a rebound, which could divert speculative liquidity away from smaller assets. Analyst Rekt Capital warns that the upside may not be unlimited and suggests that the dominance rebound could represent a post-breakdown relief move before further weakness returns.