The chief executive of blockchain intelligence platform CryptoQuant believes a potential incoming altseason will not be like prior ones for one key reason.

On-chain analyst Ki Young Ju tells his 381,200 followers on the social media platform X that, unlike past cycles, liquidity can no longer flow at the same levels from Bitcoin (BTC) into altcoins, sending them soaring.

The analyst says there is now massive traditional finance participation in Bitcoin, including through spot market BTC exchange-traded funds (ETFs) and increased buying by software company MicroStrategy (MSTR).

“This alt season won’t be what you expected. It’s going to be weird and challenging. Only a chosen few will win the game. Market sentiment is good, but there isn’t much fresh liquidity. Bitcoin is drifting away from the crypto ecosystem. Bitcoin has built its own paper-based layer-2 ecosystem through ETFs, MSTR, funds and more. In this paper-based L2 Bitcoin bridging to other altcoins is impossible.”

He also shares a chart showing Bitcoin’s price correlation with alts. A score of 1 is the highest correlation, whereas the lowest correlation possible is 0.

“Altcoins used to move together based on their correlation with BTC, but that pattern has now broken. Only a few are starting to show independent trends as they attract new liquidity.”

The analyst notes that spot market BTC ETFs have accumulated as much as is believed to have been mined by Bitcoin’s pseudonymous founder Satoshi Nakamoto in the early days of the cryptocurrency’s existence.

“Bitcoin spot ETFs now hold as much BTC as Satoshi Nakamoto (Patoshi).”

He also says that investor demand for the ETF product is returning to its historical high.

“Bitcoin ETF demand is as strong as at their initial approval this year.”

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Generated Image: Midjourney

Ampera’s AMP rose 62% in the last 24 hours and continued its rally as on-chain metrics indicated whales have begun accumulating the altcoin, driven by its increasing utility.

AMP (AMP) soared to a high of $0.0133 on Wednesday morning, marking a jump of over 330% from its lowest point this year. The surge in price pushed its market cap over $1 billion for the first time in 29 months before settling at $978 million when writing. 

The altcoin’s rally coincided with a 750% surge in daily trading volume, which reached over $601 million, while AMP also trended on Google on the back of heightened retail interest.

Why is AMP price rising?

There are three potential catalysts driving AMP’s recent rally.

Firstly, AMP’s surge coincided with a broader rally in the altcoin market, as major cryptocurrencies like Binance Coin (BNB) and Tron (TRX) posted significantly higher daily gains of 17.6% and 68.8%, respectively, compared to Bitcoin’s modest 1.4% rise during the same period.

Second, Flexa, a digital payments platform that uses AMP as collateral, recently announced its integration with the Zcash wallet app ‘Zashi.’ The integration allows users to make purchases at Flexa-enabled U.S. stores without revealing their wallet or currency details.

As more transactions occur on the platform, the demand for AMP to serve as collateral naturally increases. This reduces the token’s available supply, creating upward pressure on its price, which is potentially fueling growth for the altcoin.

Third, AMP’s rally has been bolstered by a surge in whale activity over the past 24 hours. Data from IntoTheBlock shows that whale holder netflow jumped over 150%, shifting from a $186K outflow on Dec. 2 to $473K in inflows on Dec. 3, signaling renewed interest from large investors.

Meanwhile, on the daily chart, AMP has risen above both the 50-day and 200-day Simple Moving Averages, indicating bulls are still in control. Further, the 50-day SMA has crossed over the 200-day SMA, forming a golden cross, a major bullish sign in technical analysis.

Further, the MACD line (blue) and the signal line (orange) on the Moving Average Convergence Divergence indicator have been moving higher above the zero mark, which means the rally still holds significant momentum.

Considering these signals, AMP could potentially continue its rally, a sentiment also echoed by analyst Javon Marks, who projected that AMP could climb to $0.07048—a potential increase of over 470% from its current price.

Arbitrum, a cryptocurrency network, has announced on its official account that its layer-2 platform has reached $20 billion in total value locked (TVL).

Arbitrum on X’s post on Dec. 03 claimed that the first layer-2 platform could reach $20 billion in total value locked (TVL) or increase up to double-digit, which specifically rises 14.2%.

“Arbitrum One has just become the first L2 to hit $20 billion in TVL. We did this by inovating together, with the stage 2 horizon and ecosystem growth happening in all verticals, the sky’s the limit for how far we can scale. Accelerate,”

Arbitrum mentioned on the post.

According to L2Beat data, Arbitrum One achieved $20 billion in TVL with $6.64 in canonical, $5.32 billion in external, and $8.12 billion in native. This milestone also leaves the competitors behind, including Base with $12.4 billion, OP Mainnet with $8.56 billion, and Blast with $1.55 billion.

Arbitrum (ARB) is the highest native minted value on this platform, with around $4.3 billion, followed by USD Coin (USDC), with a value of $2.2 billion.

Stage 2 of Arbitrum One is still ongoing, and some issues need to be fixed: fraud-proof submission, upgrade unrelated to on-chain, and the security council’s action, which is not confined to on-chain.

Arbitrum boosting AI growth

Arbitrum Foundation also actively promotes the artificial intelligence (AI) industry; one of the support initiatives is a $1 million grant to Arbitrum Network. The Trailblazer AI Grant is an initiative for developers and creators who are dedicated to building AI agents on Ethereum layer-2.

This artificial intelligence also helps bring thousands of applications to Arbitrum and gives the opportunity to explore projects ranging from non-fungible tokens (NFT) to ERC20 tokens. Projects that are eligible in the process will receive $10,000 as a reward.

Besides that, this initiative to bring artificial intelligence to the Arbitrum would unlock the potential of layer 2.