As Bitcoin continues to skyrocket in price and momentum moves to large-cap coins, the crypto analytics firm Santiment reports that whales are rapidly accumulating the relatively unknown cryptocurrency Ren (REN).
Ren, which provides inter-blockchain liquidity for decentralized applications, gained more than 350% in value since the beginning of April and hit its all-time high of about $0.199 on July 8th. It is currently ranked 64th among cryptos by market capitalization and trading around $0.168 at time of writing, according to CoinMarketCap.
Santiment utilizes a metric that examines the amount of tokens held by top non-exchange owners, otherwise known as whales. And that metric indicates whales have been purchasing REN for the last two months.
The top 10 non-exchange addresses for $REN have been accumulating rapidly. In the past two months, these addresses have increased bags from 227.1M tokens held to 327.0M (+44%). An uptick of this magnitude indicates high whale confidence in the asset. ? https://t.co/DeCzIys9nc pic.twitter.com/kqktcQpOAN
— Santiment (@santimentfeed) July 26, 2020
Santiment does note, however, that with Bitcoin trading around $11,000, the overall momentum seems to be favoring large-cap coins, which could push DeFi coins lower in the near term.
“…amongst the top 100 highest market cap crypto assets, 20 of the 30 projects that have had positive gains in the past day are in the top 40.
After the past couple months were all about DeFi and altcoins having all the fun, the narrative has quickly switched back to BTC and large-cap assets. This shift could be long lasting with our DAA and volume indicators supporting a movement toward top cap projects.”
As for Ethereum, the second-largest cryptocurrency by market cap has been rising at a faster pace than Bitcoin. However, there are signs it may pull back in the short term, according to the analytics firm.
Santiment utilizes a metric called Daily Active Addresses (DAA) vs. Price Divergence, which compares an asset’s price action to the number of unique crypto addresses interacting with that specific coin on a daily basis. The metric views price action that outpaces DAA as a bearish signal, and vice versa.
For the first time since the middle of June, Ethereum earlier this week saw a deficit in daily active addresses. Still, Santiment says the asset’s overall fundamentals remain strong:
2) which indicates the potential of a short-term pullback. However, considering the positive fundamental news for #Ethereum, don’t be surprised if a retracement is extremely minor and temporary before continuing up. Get 2 weeks free of Sanbase PRO and gain access to this model!
— Santiment (@santimentfeed) July 26, 2020
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