Exploring Altcoin Movements: Santiment Highlights Changes in Network Expansion

  1. Introduction
  • Santiment, an on-chain analytics firm, highlights recent changes in altcoin network growth.
  1. Network Growth Indicator Explained
  • Focus on the “network growth” metric, tracking the number of new addresses joining a cryptocurrency’s network.
  • New addresses defined as those making their first transaction, reflecting diverse reasons such as privacy or participation in fresh trades.
  1. Reasons Behind Network Growth
  • Differentiates between new addresses for privacy and those driven by adoption.
  • Adoption seen as a positive development, providing a more stable foundation for future asset movements.
  1. Altcoin Polarization Post Bitcoin ETF News
  • Post Bitcoin spot ETF news, altcoins exhibit a clear separation in network growth trends.
  • Santiment notes the divergence forming over time, intensifying after recent Bitcoin ETF approvals.
  1. Chart Analysis of Six Altcoins
  • Santiment shares a chart illustrating network growth trends for Ethereum (ETH), Ethereum Name Service (ENS), Threshold (T), ApeCoin (APE), Basic Attention Token (BAT), and Enjin Coin (ENJ).
  • Ethereum, ENS, and T experience notable growth, while APE, BAT, and ENJ witness declines.
  1. Detailed Altcoin Comparison
  • ETH’s network growth rises by 6%, while smaller alts ENS and T surge by 124% and 195%, respectively.
  • Absolute numbers show ETH with over 631,850 new addresses, compared to ENS (1,947) and T (344).
  • APE, BAT, and ENJ see declines of 23%, 42%, and 32%, respectively.
  1. Long-Term Implications
  • Santiment suggests altcoins with increased adoption are better positioned for long-term growth.
  • The blog emphasizes the ongoing divergence and its potential impact on the sector.
  1. Price Movement
  • Despite recent struggles for Bitcoin, Ethereum breaks above $2,500, showcasing positive price movement.
  1. Conclusion
  • Altcoins display varying network growth patterns, with Santiment highlighting the importance of adoption in determining long-term success. The impact of recent developments, such as Bitcoin ETF approvals, adds complexity to the altcoin landscape.

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