Santiment has pointed out the altcoins that are currently observing a signal that has often accompanied market cap growth in the past.
These Altcoins Have A High Amount Of Active Addresses Right Now
In a new post on X, the on-chain analytics firm Santiment has discussed some altcoins that are seeing a high amount of address activity on their networks at the moment.
The relevant indicator here is the “daily active addresses,” which keeps track of the total number of unique addresses of a cryptocurrency that are participating in some kind of transaction activity on the blockchain.
The unique number of wallets can be equated with the number of unique users visiting the blockchain, so this metric’s value can tell us about how the traffic on the network is looking right now.
When the indicator has a high value, it suggests that a large number of users are participating in trading activity currently, which can be a sign that interest in the asset is high.
On the other hand, the metric having a low value implies the general interest among traders may be low at the moment as not many wallets are coming online to make trades every day.
Now, here is the chart shared by Santiment that highlights the trend in the daily active addresses for three altcoins: Litecoin (LTC), Lido DAO (LDO), and Maker (MKR):
The value of the metric appears to have shot up for all three of these coins | Source: Santiment on X
As displayed in the above graph, all three of these altcoins, LTC, MKR, and LDO, have observed a spike in the daily active addresses recently. This implies that investors have been actively making moves on these networks.
Historically, a large number of users simultaneously making moves has made up for a ripe environment for volatile moves in price. “Typically, this gradually rising utility is accompanied by market cap growth,” notes Santiment.
As the activity has gone up recently, Maker and Lido DAO have enjoyed some upward momentum, implying that the past pattern has perhaps once again held this time as well.
Litecoin, on the other hand, hasn’t observed any such sharp price moves since the daily active addresses have registered their spike. This may imply that a bullish divergence is now brewing in the asset’s price and it may soon correct back up, catching up with LDO and MKR.
Another altcoin that may also be bullish according to on-chain data is Cardano (ADA). As analyst Ali has pointed out in an X post using Santiment data, the ADA whales have shown some buying recently.
The trend in the supply of the Cardano whales | Source: @ali_charts on X
This net buying from these humongous holders has continued despite the sharp plunge that the cryptocurrency has observed recently, which is a positive sign for a potential turnaround.
Litecoin has continued to move flat since its plunge a few days back as its price is still floating around the $65 mark.
Looks like the price of the coin hasn't moved much recently | Source: LTCUSD on TradingView
Featured image from Shutterstock.com, charts from TradingView.com, Santiment.net
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Author: Keshav Verma