The crypto market has struggled for eight weeks, causing retail investors to leave the industry or their assets until general sentiments improve. While most assets are in the red, the on-chain intelligence platform Santiment has found signs that some alternative cryptocurrencies are rebounding.
According to a report from the firm, altcoins with large capitalizations like Ripple (XRP), Binance Coin (BNB), Tron (TRON), and Stellar (XLM) have been quietly gaining momentum and even price dominance on bitcoin (BTC).
Altcoins Rebound Amid the Dip
Examining the on-chain activities of crypto projects, Santiment discovered that some are seeing surges in their network utility, active address count, whale activity, exchange inflows/outflows, and social sentiment. This can also be seen in Santiment’s Activity Matrix, which provides data for 114 of crypto’s most well-known assets in eight categories over a three-month range.
Santiment said the Activity Matrix indicates some projects have the potential to turn their fates around in the near future. The firm noted that most assets would see their lowest network activity in a year because retail traders could be waiting for market sentiment to improve before returning to their positions. Some assets witnessing this include Pepe (PEPE), Chainlink (LINK), and Shiba Inu (SHIB).
“Well, unfortunately, the price trend is more likely to continue for these projects than others. Ideally, during a market-wide price downturn, we see sudden pick-ups in whale transactions (indicating accumulation from them) or network growth (indicating upcoming on-chain transaction increases),” Santiment explained.
Positive Network Metrics
Santiment’s analysis found top candidates for each category in the Activity Matrix, including Dogecoin (DOGE), Pax Gold (PAXG), Magic Token (MAGIC), Audius (AUDIO), Uma (UMA), Joe (JOE), and Threshold (T).
DOGE is experiencing the highest rise in address activity. This means there is a rising amount of unique addresses interacting on the coin’s network, with an increasing number of individuals on the sending or receiving side of transactions.
For the highest network growth, Santiment highlighted PAXG as the top candidate, indicating that the network has more opportunities for rising utility in the future. Magic Token is seeing the highest number of transactions surpassing $100,000 in value. This shows that major stakeholders are taking an increasing interest in MAGIC.
Furthermore, Audius is seeing the highest rise in positive sentiment across crypto communities, while Uma is dominating discussions on social media platforms. PAXG emerged as another top candidate for exchange outflows, while Joe and Threshold are the top Mean Dollar Invested Age and Age Consumed risers, respectively.
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