Ethereum is showing positive signals for holders, according to Santiment
Despite the market correction of the past two weeks, Ethereum (ETH) is showing some strong indicators that could bode well for the holders, according to the cryptanalyst firm Santiment.
Santiment told its 95,200 Twitter followers that the amount of ETH on crypto exchanges has decreased significantly in the past 12 months, suggesting that ETH owners are expecting higher prices for the smart contract platform.
“Ethereum has recovered to the level of $ 3,163. Last year, a third of the ETH offering was moved to stock exchanges. This is a good sign for the owner.
ETH stock market balance as of September 26, 2020: 24.1%.
ETH stock market balance as of September 26, 2021: 16.1%.
The source: Mood / Twitter
Ethereum’s recent token circulation has also risen to its highest level since the end of June, according to the company, with the rise in token circulation showing that holders are using ETH for various transactions within the Ethereum.it ecosystem, such as making payments of NFTs or investing in DeFi.
“If the benefits of ETH and the movement of tokens continue to increase, then in general the price will follow.”
The source: Mood / Twitter
At press time, ETH is trading at $ 2,900, according to CoinGecko. The second largest crypto asset by market capitalization is down almost 16% in the past 14 days.
Santiment also recently ranked a number of DeFi and NFT altcoins based on panic among holders amid a market correction. For each asset, the company checked how many tokens were transferred from cold wallets to exchange wallets (CEX) and the average profit or loss of all coins that changed addresses on a daily basis.
Santiment noted that the blockchain gaming platform and NFT Enjin (ENJ) showed the highest level of panic among the altcoins analyzed.
“What we are seeing here is three spikes in ENJs deposited on exchanges and a significant drop during dumping.”
The source: mood
The second and third belong to Compound Borrowing and Lending Projects (COMP) and Aave. Although they show less panic than the ENJ.
Next up is the MKR loan project with an increase in cash flow during the correction.
Holders of UNI, the native token of the decentralized exchange Uniswap, show the least panic among the tokens analyzed by Santiment.
“The inflow to exchanges is high, but it looks like UNI’s previous low has drawn even more tokens into the exchanges (an increase from two peaks). The average net profit and loss decreased slightly, indicating some of the losses related to UNI transactions. However, the previous dumping is a good opportunity to pile up UNI. Lessons learned “.
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According to Dailyhodl