Cryptocurrency analysis firm Santiment stated that speculators are abandoning altcoin leader Ethereum as they seek different altcoins that offer higher ROI. If the company’s analysis is correct, what does this mean for Ethereum? Here are all the details.
Santiment, one of the most important data companies in the blockchain industry, stated that it has seen an Ethereum “flow” on exchanges. According to the company, after the drops in cryptocurrencies, investors started selling their assets.
“Now is not the right time if we want an uptrend to continue, but much of the recent price action is dependent on macro events (Evergrande, SEC’s view of crypto, etc.).”
In the hours when the analysis was reflected in the world press, the price of ETH was expected to rise to the levels of 3102 dollars, while it even fell below the 3000 dollar level and regressed to 2600 dollars, while the current value of ETH is around 2889 dollars.
Although Santiment says that this decrease is due to macro reasons, this situation can be read differently in ETH. According to Santiment, network growth was sluggish even before the ETH price fell. The biggest reason why this growth is sluggish, according to the firm Avalanche (AVAX), Fanton (FTM) and Cosmos (ATOM) growth in L1 (Tier 1) projects, such as L1 (Tier 1) projects, and less speculation in NFTs, the new star of the crypto world. Santiment’s statement on the subject also added:
“If there are better speculative opportunities with cheaper and higher ROI, people will be there. Right now, ETH is not the place for them.”
According to the firm, speculators are turning to L1 (Tier 1) projects for better returns.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.