‘Typically a Good Sign’: One Metric Is Flashing Bullish for Altcoins, According to Analytics Platform Santiment
Crypto analytics firm Santiment says one metric is suddenly flashing bullish for altcoins as Bitcoin (BTC) reclaims $100,000.
Santiment says that multiple altcoin projects are seeing a massive increase in whale transactions, including the stablecoin Dai (DAI), issued by Maker.
According to Santiment, the increased buying of DAI is a bullish signal, indicating that investors are probably going to soon use the stablecoins to accumulate altcoins.
“For stablecoins, increased activity is typically a good sign that large levels of funds are being prepared to be swapped for altcoins that are common with that stablecoin’s trading pair. For example, Dai (shown three times on this countdown [below]) is commonly associated with ETH-based assets.”
Santiment shares a top-10 list of altcoins with a market cap of at least $500 million that are seeing the largest increase in whale transactions so far this week:
“MakerDAO DAI on BNB: +800%
DeXe Network DEXE: +250%
LayerZero CORE on Optimism: +200%
Aave (AAVE) on Polygon: +200%
MakerDAO DAI on Arbitrum: +182%
Telcoin (TEL): +100%
GateToken (GT): +100%
Ripple XRP: +81%
MakerDAO DAI on Polygon: +182%
Ondo Finance (ONDO): +59%.”
Santiment also warns that large whale buys of altcoin projects could trigger market volatility.
“Assets seeing high whale activity are significantly more likely to see price reversals, as key stakeholders make moves commonly around profit taking or dip buying moments.”
Lastly, Santiment reports that payments altcoin XRP is witnessing massive network activity as its value surges.
“XRP has just reached a new seven-year high, crossing a $3.39 market value for the first time since January 2018. With this rise, we have just seen 2,365 $100,000+ XRP transactions in the latest eight-hour span, the highest spike since December 3rd. Total holders are also skyrocketing.”
XRP is trading for $3.24 at time of writing, down 4.2% in the last 24 hours.
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