Thursday, September 16

Data Analysis Company Santiment Comments on Ethereum (ETH), Warns on Polygon (MATIC)

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Cryptocurrency analysis firm Santiment evaluated the next moves for Ethereum (ETH) and Polygon (MATIC), the most talked-about cryptocurrency of the last period.

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Santiment states that Ethereum’s wallet activity has increased, and that at the end of May, “from panic selling” revealed that the amount of active deposits has decreased since then. The company also “a good sign for the uptrend” He states that the audience sentiment, which he considers to be a coincidence, is currently on a downward trend.

Santiment points out that gas fees on the Ethereum network have dropped and are back to levels not witnessed since mid-January this year. The low gas fees caused Santiment to state that it is optimistic about the best smart contract platform:

“Ethereum is hovering around $2,800 and one of the positive signals for the leading cryptocurrency is that its fees are returning to mid-January lows. With an average gas fee of just $5.48 per transaction, this allows investors to move their assets more comfortably.”

Santiment adds that the number of ETH collectively held by the top ten Ethereum wallets is approaching an all-time high, which has historically been a particularly bullish signal for the asset:

“The top 10 Ethereum whale wallets are moving towards a new milestone in terms of retained supply. These top addresses, currently holding 19.08 million ETH, had an all-time high of 19.25 million ETH three weeks before the price hit above $4,300.

As for the Ethereum scaling solution Polygon, Santiment says that MATIC whales that sell on the rally are reaccumulating during the correction:

“MATIC whales with 100,000 to one million tokens are accumulating. Looks like they’ve been rallying for a while. And now he’s starting to buy from these lows.”

data analysis company santiment ethereum eth commented warns of polygon matic 1
Source: Santiment

While Santiment says that MATIC will eventually rise, he points out that the Market Value to Realized Value (MVRV) measurement shows some signals that further correction may be needed before another major rally begins.

MVRV divides the market capitalization of a cryptocurrency by its realized capitalization; this can show the average profit/loss of all cryptocurrencies currently in circulation relative to the current price. Based on Santiment MVRV, he says MATIC is a bit overvalued right now:

“Overall, MATIC’s MVRV is a problem and will remain a problem for a while. Regardless, more corrections are needed until we get into worthless territory.”

The firm is still bullish on MATIC and has also provided three statistics that investors should consider when evaluating its blockchain scalability platform:

“Overall, there are more bullish than bearish signs at the moment. Things to watch:

Active wallets

Number of whale transactions

Whale behavior (distribution of tokens)”

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