An executive at Santiment crypto analytics firm is analyzing a handful of altcoins that surged in price earlier this week but have since corrected.
In a new YouTube video, Santiment director of marketing Brian Quinlivan says that the 30-day market value to realized value (MVRV) metric is helpful when hunting for crypto bargains.
The MVRV metric reveals the average profit/loss for coins in circulation.
According to the analyst, decentralized crypto exchange Uniswap (UNI) falls into a “good opportunity zone,” right now in terms of its 30-day MVRV.
“We typically look for anything below 15% to be a good opportunity zone, and we definitely jumped way below 15% there… we are well into the opportunity zone still for Uniswap.”
Uniswap, however, has seen surging inflow onto exchanges, with exchange supply going up accordingly, Quinlivan explains. The analyst says this development is “a little bit concerning.”
Quinlivan says whales have been accumulating the governance token of Aave (AAVE), a DeFi lending protocol. The analyst says that’s “a good sign from the key stakeholders” of the crypto asset. He adds that AAVE is displaying a few more bullish metrics than Uniswap.
Quinlivan notes that investors appear to be shorting virtual reality platform Decentraland (MANA) on the crypto exchanges Binance and FTX.
The crypto analyst notes this actually is an optimistic development for the crypto asset.
“It’s pretty cyclical, and right now, this is one of the most bullish metrics for MANA, because there’s such an immense amount of shorting that… these huge spikes are bound to be liquidated at some point because people shorting to this extent usually doesn’t go too well.”
However, Quinlivan also notes that Decentraland’s MVRV and on-chain metrics look bearish.
The crypto analyst says development activity on the smart-contract platform Solana (SOL), measured by daily GitHub submissions, has been on the rise in the past year.
“The daily GitHub submissions is sitting at about a little over 500 a day right now, after… a year ago being at 190. So that’s a very good sign, and it’s indicative of the fact that Solana’s team still believes in improving the product, innovating where possible, and they believe that it has long-term sustainability, and that’s a really great thing to keep in mind when it comes to any asset.”
Solana’s native token, SOL, is trading at $97.90 at time of writing, down 10.35% in the past day.
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The post Santiment Looks at State of Solana (SOL), Uniswap (UNI), AAVE and One Other Altcoin As Crypto Markets Bounce appeared first on The Daily Hodl.