Through the short crypto rally that began at the end of last year, Bitcoin (BTC) achieved another all-time high (ATH), surpassing $100,000 USD.
But can we definitively say that we have experienced an Alt Season? Most altcoin investors might not agree, as the majority of altcoins, with the exception of Solana and a few others, have largely stagnated, failing to reach new ATHs or even significantly higher price levels.
Why didn't most altcoins experience their own "Alt Season" while Bitcoin surged?
According to a CryptoQuant analysis, this market behavior represents a new pattern that diverges from historical trends. The significant price appreciation of BTC may be attributed to a new layer of funds entering the market from traditional finance, such as through ETFs. Consequently, the flow of funds from BTC to other altcoins may be restricted.
Even though his analysis seems to be reasonable, we don't know its long-term validity.
The blockchain and cryptocurrency area is continuously evolving.
Stablecoins are evolving as faster, more convenient, more secure, and lower-cost tools for value transfer, replacing traditional payment systems like VISA.
Sooner or later, direct BTC purchases from DEXs may become more secure and efficient than using ETFs.
However, at present, we are observing this new market trend. Perhaps Solana, along with other competitive and reliable chains and their corresponding coins, will survive and dominate the practical applications of blockchain technology and value. For altcoins aiming to remain relevant, it would be advantageous to strategically align with this trend sooner rather than later. Launching new, independent chains may prove ineffective.