In the ever-evolving cryptocurrency world, prominent analytics firm Santiment has once again made waves, this time shedding light on both the altcoin market and Ethereum’s ongoing journey. Here are the details…
Santiment made a statement for four altcoins
Santiment’s latest analysis shined the spotlight on four specific altcoins: Fetch (FET), Loopring (LRC), Ren (REN), and Terra Virtua (TVK). Santiment analysts observed in their recent articles that there is a significant differentiation between these altcoins and Bitcoin. Bitcoin, the flagship cryptocurrency, has been stuck in a relatively narrow price range for a long time. The most important takeaway from Santiment’s analysis is the significant increase in the supply of these altcoins on various cryptocurrency exchanges. This increase in supply is a clear indication of the increased interest and trading activity surrounding these tokens.
📈 Ace #altcoins continue to decouple from one another during #Bitcoin‘s extended ranging period, watch $FET, $LRC, $RENand $TVK and their rising levels of supply on exchanges. A high ratio typically implies increased likelihood of future volatility. https://t.co/0DEPR3KpgJ pic.twitter.com/sT3MFv8Sec
— Santiment (@santimentfeed) October 4, 2023
However, it also serves as a warning sign for potential investors, as historically high supply levels on stock markets often translate into increased volatility in the future. Analyzing the numbers, Santiment’s data reveals some interesting statistics. Currently 18.6% of Fetch (FET) tokens, 27.8% of Loopring (LRC) tokens, 38.7% of Ren (REN) tokens, and 67.7% of Terra Virtua (TVK) tokens are kept in cold wallets on central exchanges. This distribution indicates that a significant portion of these altcoins are still available for trading, setting the stage for potential price fluctuations in the near future.
Ethereum migration
While Santiment’s attention has generally been focused on other altcoins, they also covered the world’s second-largest cryptocurrency, Ethereum. Santiment revealed an important development regarding Ethereum’s supply dynamics in a tweet. Last Wednesday, approximately 110,000 ETH, equivalent to a staggering $181 million, were withdrawn from exchanges. This move marked the most significant outflow of Ethereum from exchanges since August 21. Notably, the total amount of Ethereum outside exchanges reached an all-time high of 115.88 million ETH. Simultaneously, Ethereum supply on exchanges dropped to its lowest point in nearly 5.5 years.
😮 #Ethereum saw about ~110K $ETH ($181M) move off of exchanges Wednesday, the largest outflow day since August 21st. The amount of non-exchange Ethereum now sits at an #AllTimeHigh 115.88M $ETH, while its exchange supply is at its lowest in ~5.5 years. https://t.co/PUOWGt0KS0 pic.twitter.com/u54pp6LZij
— Santiment (@santimentfeed) October 5, 2023
These data underscore a growing trend towards Ethereum being moved to off-exchange wallets, signaling a shift towards decentralization and the long-term investment strategy of its owners. As Ethereum continues to gain popularity as the backbone of decentralized applications (DApps) and smart contracts, these supply dynamics could have significant impacts on the cryptocurrency’s price and overall market sentiment. All in all, Santiment’s latest analysis offers valuable insight into both the altcoin market and Ethereum’s ongoing journey towards decentralization. As the cryptocurrency world continues to evolve, it remains important for both investors and enthusiasts to closely follow supply dynamics and market trends.
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