Cryptocurrency market intelligence platform Santiment reveals bullish prospects for the leading altcoin Ethereum (ETH) by market cap. The explanations of the crypto platform on the subject are in the continuation of the news.
Santiment: Lead altcoin ETH’s supply plummets
In a recent statement, Santiment stated that Ethereum (ETH)’s Market Cap to Realized Value (MVRV) metric for the past seven days has been changed to ETH’ He says that the tide typically indicates that it is close to the “opportunity zone” where the price bottoms out. This metric is used to show the average profit or loss of all cryptocurrencies in circulation at the current price. Santiment explains the bullish trend in leading altcoin ETH as follows:
ETH’s 7-day MVRV, which measures short-term profit/loss by holders, shows that we have almost entered the opportunity zone that has historically seen a local bottom develop.
The crypto market intelligence platform also notes that the supply of Ethereum on exchanges is on a downward trend. According to Santiment, the supply of ETH on exchanges has continued to decline since mid-March, regardless of the rally. According to the platform, this may indicate that some market participants with large amounts of ETH are unwilling to sell anytime soon.
ETH’s social volume has been stagnant for some time
Santiment also states that if the level of Ethereum gas fees is appropriate, ETH is nowhere near a price. According to the platform, the altcoin’s previous major peaks saw average gas fees skyrocket as the crowd piled up. On the other hand, the famous analysis firm states that ETH is not even close to the rise seen in May 2021 and November 2021. However, the market intelligence platform states that Ethereum’s social volume is stagnant, which may indicate a lack of buyer enthusiasm for the altcoin. According to Santiment, whose data we follow closely as
Kriptokoin.com, differences between Ethereum price and social volume are not uncommon. Concluding on the leading altcoin, the crypto analytics firm notes:
ETH social volume remains fairly stable amid the recent price rally, suggesting that the overall market is not at all excited and perhaps they can’t believe it. However, ETH social volume has been in an overall downward trend since the start of the year as Ethereum continues to lose its appeal to other Tier-1s or Tier-2s. When we zoom out, we’ll notice another ETH price and social volume divergence similar to last year. Can we see the same behavior?
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