The Bitcoin and altcoin world has been experiencing great activity lately. Especially capital inflows in the Ethereum network attract the attention of investors. Nansen 2 took a detailed look at the capital entered by smart money into the Ethereum network in the last 24 hours. Here are the details…
Those altcoin projects are the focus of smart money
While the overall cryptocurrency market is experiencing a slight downturn, data from blockchain analysis platform Nansen reveals interesting movements in “Smart Money”. Thus, it points to potential future trends. The term “Smart Money” refers to institutional investors and experienced traders known for their strategic investments. Smart Money does not refer to a specific asset or fund. Rather, it is a collective term for investors and institutions that are considered to have superior knowledge, resources and analytical capabilities in financial markets.
Understanding their activities can provide valuable insights into potential market shifts. On February 11, Nansen’s 24-hour capital inflow watchlist on the Ethereum network highlighted five lesser-known tokens attracting Smart Money’s attention:
- LOWER: This token saw an inflow of around $870,000 despite a 5.4% drop in price to $0.35. This seemingly paradoxical behavior suggests that Smart Money may be saving in anticipation of a future price increase.
- POSSIBLE: This token experienced a significant price increase of 24.5% to $4.95, alongside an inflow of nearly $400,000 from Smart Money. This strong synergy shows that investors have increased confidence in the project’s potential.
- LDO: Despite a small decline in price of 1.39% to $2.97, LDO generated an inflow of approximately $450,000 from Smart Money. This may indicate continued belief in the long-term value proposition of the Lido DAO platform.
- ONDO: It achieved an entry of 260 thousand dollars.
- HFT: It showed an entry of 280 thousand dollars.
What are the other coins on the list?
The list also includes established players such as ETH, WBTC, and aEthWETH, indicating that Smart Money is still interested in large assets. However, the influx into lower-volume tokens such as ALT, OLAS, and LDO signals a potential shift in focus towards projects that are perceived to be undervalued or have high growth potential. Understanding Smart Money dynamics and their potential impacts can be valuable to investors.
But it’s crucial to do this with a healthy dose of skepticism and thorough research. Remember that their actions provide signals, not guarantees, and individual circumstances and risk tolerance should always guide investment decisions. While Smart Money’s actions are no guarantee of future performance, understanding their movements can offer valuable insights for individual investors. However, it is crucial to conduct thorough research and consider individual risk tolerance before making any investment decisions.
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