Market intelligence firm Santiment has reported that Cardano (ADA), a notable competitor to Ethereum (ETH), has reached an important milestone in on-chain activity. According to a recent update on social media, Santiment observed that long-term ADA holders have begun to transfer a significant volume of tokens, marking the most substantial movement in over a year.
Santiment’s data also highlighted that Cardano holders with substantial holdings have been actively acquiring more tokens. Specifically, these investors have amassed nearly 44 million ADA tokens, valued at approximately $12.67 million, within a span of just two weeks.
The firm pointed out that the activity of older ADA wallets has been particularly noteworthy. For the first time since April 2022, these wallets have started to move ADA tokens back into circulation. The report stated that wallets holding between 100,000 and 10,000,000 ADA are once again in accumulation mode.
As of the time of writing, ADA is trading at around $0.286, down 3.31% in the past 24-hour period.
In addition to Cardano’s performance, Santiment also provided insights into Ethereum’s market behavior. The firm noted that Ethereum is showing signs of increased upward momentum, backed by key metrics such as a decrease in the amount of ETH held on cryptocurrency exchanges.
On October 30, Santiment published a blog post that provided an in-depth analysis of Ethereum (ETH), focusing on various metrics that include price, supply on exchanges, social dominance, and the 30-day Market Value to Realized Value (MVRV 30D). The report aims to shed light on the current state of Ethereum and the factors contributing to its market behavior.
According to Santiment, there is a noticeable divergence between Ethereum’s price and trading volume. While the price of ETH has been increasing, the trading volume has significantly decreased. Santiment suggests that this divergence could indicate weakening momentum in Ethereum’s price action.
Santiment observes that the supply of ETH on exchanges has seen a considerable drop as the price has surged. This trend suggests that investor confidence is growing, leading more people to buy and hold Ethereum rather than keeping it on exchanges.
Ethereum’s social dominance is another metric that Santiment has focused on. The platform notes that ETH’s social dominance has been on the rise as the price moves upward. However, it still remains lower than the previous peak, indicating that there might be room for further growth before the market cools down.
Santiment’s analysis also includes the MVRV 30D metric, which measures the short-term profit or loss of Ethereum holders. According to Santiment, this metric has now entered what they term as the “Danger Zone.” Historically, Ethereum’s price has tended to top out shortly after entering this zone, making it a crucial metric to watch.
Santiment points out that new money appears to be flowing into the Ethereum market via Tether (USDT), which they consider a healthy sign. The correlation between this influx and the latest price action seems to support the notion that this new liquidity is being used for market speculation.
For Ethereum to maintain its upward trajectory, Santiment emphasizes the importance of a consistent flow of new liquidity entering the market. This will be crucial for sustaining healthy price growth in the near term.
At the time of writing, ETH is trading at around $1,796, down 0.12% in the past 24-hour period.
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