Inside Ki Young Ju’s Selective Thesis: Altcoin Market Reset Pushes Investors Toward Fundamentals

The debate over the future of altcoins is shifting from whether the sector can survive to which projects can demonstrate real value. CryptoQuant CEO Ki Young Ju recently argued that altcoins as a category are not disappearing, but that the market is moving away from projects driven primarily by speculation and short-lived narratives.

According to Ki Young Ju, the previous model of launching tokens without strong fundamentals is no longer sustainable. He suggested that future winners are likely to come from three main categories: tokens linked to major internet companies that create new market ecosystems, revenue-generating decentralized finance protocols, and projects aligned with broader financial trends such as stablecoins, real-world assets (RWAs), and tokenized equities.

The analyst compared the current market cycle to the aftermath of the dot-com bubble, where many companies failed but a small number of infrastructure-focused businesses eventually became industry leaders. In his view, crypto could follow a similar path, with the majority of altcoins losing relevance while a smaller group of fundamentally stronger projects gains long-term value.

Ki Young Ju acknowledged that many market participants, including Bitcoin-focused investors, remain skeptical of altcoins after previous losses. However, his argument centers on selective investment rather than a complete rejection of the sector. He estimated that most altcoins may not survive, while a small portion could remain viable if supported by sustainable revenue, real utility, and expanding ecosystems.

Market Data Shows Continued Altcoin Pressure

Data from CryptoQuant indicates that the broader altcoin market remains under pressure. CryptoQuant analyst IT Tech reported that altcoin selling activity on spot exchanges has reached a five-year high, with fifteen consecutive months of net selling recorded.

The cumulative buy and sell volume gap for altcoins excluding Bitcoin and Ethereum has continued to decline, reaching its most negative level since the metric was introduced in 2020. While conditions briefly stabilized in early 2025, selling pressure later resumed and has persisted for more than a year.

Altcoin Market Shows Selective Growth in 2026

Expectations for a broad altcoin season in 2026, similar to the market-wide rallies seen in 2017 and 2021, remain present. However, instead of widespread gains across hundreds of tokens, market activity has concentrated around a smaller group of projects demonstrating measurable development, revenue generation, and ecosystem growth.

The current market environment reflects a more selective approach, with many altcoins continuing to experience limited momentum or declining valuations.

Hyperliquid has emerged as one of the strongest examples of a fundamentals-driven rally. Although the HYPE token’s recent price movement has been partly correlated with inflows into HYPE-related spot ETFs, the project’s performance has also been supported by underlying protocol activity.

Hyperliquid’s HIP-4 event contract feature generated $6.2 million in trading volume during its first 24 hours, while 97% of protocol fees are directed toward token buybacks, creating a mechanism that may support long-term demand. The platform’s expansion into RWA perpetual markets, including contracts linked to commodities and equity indexes, has also contributed more than $280 million in cumulative trading volume from non-crypto assets.

ONDO represents another example of a market move linked to broader sector development. The token gained approximately 60% in May amid growing interest in tokenized RWAs. Solana’s recent performance has been supported by increasing institutional adoption rather than a single market catalyst. The blockchain has gained attention as companies including PayPal and Visa expand stablecoin settlement activity through its infrastructure, reinforcing its position in digital payments.

Recent market activity suggests that the current cycle differs from previous periods of broad speculative expansion. Rather than a generalized altcoin rally, capital appears to be concentrating around projects with visible product development, real usage, stronger economic models, and increasing exposure to institutional investment flows, including ETF-related demand.

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