Market Downturn and Altcoin Vulnerability
December has started poorly for the cryptocurrency market. Bitcoin (BTC) and altcoins have experienced a sharp decline in the last 24 hours due to macroeconomic factors.
While wondering whether this decline will continue, CryptoQuant CEO Ki Young Ju issued a warning regarding altcoins.
Noting that liquidity in altcoins has dried up, Ki Young Ju said that altcoins are at risk of extinction without new liquidity channels.
The Importance of New Liquidity Channels
CryptoQuant CEO stated in his statement on his account that altcoin liquidity has decreased.
He argued that altcoin projects with new liquidity channels, such as institutional digital asset treasury strategies (DAT) and Exchange-Traded Funds (ETFs), have a better chance of long-term survival.
At this point, the famous CEO added that altcoins that do not have new liquidity channels and do not actively implement ETF and DAT strategies face higher risk.
Ju stated that altcoins are ultimately a liquidity war, and warned that projects that are not connected to ETFs, DATs, or institutional channels have high risks in the long term.
Key Insights from Ki Young Ju
Altcoin liquidity is drying up.
Projects securing new liquidity channels like DAT and ETFs have a better chance of long-term survival.
If your altcoin is not playing the liquidity game, its long-term risk is likely high.
Altcoins Positioned for Survival
According to the document published by Ju, major altcoins such as Ethereum (ETH), Solana (SOL), and XRP have already been approved for spot ETFs or accepted under the DAT strategies of publicly traded companies.
On the other hand, according to Ju's chart, BNB, NEAR, TON, Tron (TRX), and Avalanche (AVAX) are altcoins being discussed for ETF approval, while they are currently assets accepted by companies within the scope of DAT strategies.