Three Altcoins Ready to Outperform Bitcoin (BTC), According to Crypto Analytics Firm Santiment
Crypto analytics firm Santiment says a handful of crypto market metrics indicate that Ethereum (ETH), Basic Attention Token (BAT) and Maker (MKR) all look more bullish in the short term than Bitcoin (BTC).
Santiment looked at each asset’s three-day averages in three metrics. The first, Daily Active Addresses (DAA) vs. Price Divergence, 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.
The second, Network Value to Transactions Ratio (NVT), compares the value transferred on a specific network (transaction volume/token circulation) to the network’s market cap. If the transaction volume is low relative to market cap, an asset is considered overvalued and vice versa.
The third metric, Sentiment Volume Consumed, measures the sentiment of market participants on Twitter.
Santiment evaluated each asset using a simplified rating system: 0-10, with 0 representing the most bearish and 10 the most bullish. A 5 implies a prediction of sideways consolidation.
Bitcoin scored a 3 on the DAA vs. Price Divergence metric, a 2 on the NVT, and a 6.5 on Sentiment Volume Consumed, for an average rating of 3.8, or “slightly bearish.”
Ethereum scored a 5 on DAA vs. Price Divergence, a 5.5 on NVT, and a 6 on Sentiment Volume Consumed, for an average rating of 5.5 (neutral).
Basic Attention Token scored an 8.5 on DAA vs. Price Divergence, a 9.5 on NVT, and a 6 on Sentiment Volume Consumed, for an average rating of 8.0 (bullish).
Maker scored a 9 on DAA vs. Price Divergence, a 10 on NVT, and a 5.5 on Sentiment Volume Consumed, for an average rating of 8.2 (bullish).
Santiment cautions that none of these scores are indicative of the firm’s long-term outlook on each asset.
“With every weekly volume we release of our Bold Predictions series, we are taking a look at the most recent three-day averages (or percent changes) for each metric we’re covering. As a reminder, these signals are for intra-day traders to assess local tops and bottoms based on historically solid leading indicators…
Whether we call a project bullish or bearish for the next week or two, please remember that this has no relevance to what we think of the asset’s long-term viability as an investment.”
(This article originally appeared on The Daily Hodl, a Los Angeles-based news site covering the digital economy, and has been reprinted with permission.)
Featured Image: unsplash/Dmitry Demidko
The Daily Hodl covers news and insight for the digital economy with a focus on leading cryptocurrencies such as Bitcoin, Ethereum and XRP, altcoins, digital asset adoption and regulation, market analysis and blockchain technology.
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