These Are The Altcoins To Keep An Eye On: Santiment
05 October 2023 - 2:00AM
NEWSBTC
Data from Santiment shows that several altcoins have registered an
increase in address activity, which may make them worth keeping an
eye on. Bitcoin Cash & Other Altcoins Have Observed A Rise In
Active Addresses As explained by the on-chain analytics firm
Santiment in a new post on X, some alts are seeing rising activity
despite the cooldown that the overall cryptocurrency sector has
observed in the past couple of days. The indicator of interest here
is the “daily active addresses,” which keeps track of the total
number of unique addresses of any given coin that are interacting
on the blockchain in some way every day. The metric accounts for
both senders and receivers. By “unique,” what’s meant here is that
any address participating in transaction activity on the blockchain
is only counted once, regardless of how many transfers it may be
involved in. Related Reading: Can Bitcoin Continue Its Run? These
Factors Could Suggest So This restriction helps provide a more
accurate representation of the actual activity on the network, as
just a few addresses making hundreds of transactions can’t skew the
metric by themselves. When the value of the indicator is high, it
means that there are a large number of unique addresses taking part
in transaction activity right now. Such a trend implies the
blockchain is receiving a high amount of traffic currently. On the
other hand, low values imply not many users are interacting with
the network, a possible sign that interest in trading the
cryptocurrency is low at the moment. Now, here is a chart that
shows the trend in the daily active addresses for several different
altcoins over the past month: Looks like the value of the metric
has been high for all of these assets recently | Source: Santiment
on X As displayed in the above graph, the daily active addresses
indicator has observed a sharp surge in the past couple of days for
the altcoins listed here: Bitcoin Cash (BCH), Small Love Potion
(SLP), Mask (MASK), LeverFi (LEVER), and Civic (CVC). According to
Santiment, these latest highs in the metric correspond to the
highest levels that these cryptocurrencies have witnessed in around
three months. Such high activity naturally suggests that there is a
lot of interest in these coins among investors right now. Most of
these are small-cap coins, though, but there is one among them that
has a very notable standing in the rest of the market: BCH. The
16th-ranked asset in the sector has registered a decline in the
last two days, much like the wider sector, but the asset’s active
addresses have remained high in number. Related Reading: Cardano To
Shed Its Gains? Profit-Taking Spikes To High Levels Usually, high
address activity is a good sign for rallies, as a large amount of
active trader pool means that the move has a higher probability of
finding the fuel it needs to keep itself going. Interestingly,
besides these altcoins, the largest stablecoin in the sector,
Tether (USDT), has also seen the indicator shoot up during this
period. Investors use stablecoins for storing their value in a more
secure form and for buying into other assets, so the high address
activity can potentially be a sign that some moves are taking place
in the background. BCH Price Bitcoin Cash had earlier surged past
the $250 mark, but with the latest drawdown, the altcoin has
plunged to $230. Looks like the altcoin has reversed its recovery |
Source: BCHUSD on TradingView Featured image from Shutterstock.com,
charts from TradingView.com, Santiment.net
Bitcoin Cash (COIN:BCHUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bitcoin Cash (COIN:BCHUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024