Crypto insights firm Santiment reveals that the behavior of a group of investors can be a negative sign for the market.
According to Santiment, stablecoins are hoarded by sharks, or companies holding between 10,000 and 100,000 of a given crypto asset Tether (USDT) and USD Coin (USDC) even as crypto asset prices rise.
The market research firm says this is an indication of investors’ doubts about the sustainability of the recent crypto market rally.
“Tether and USD coin shark addresses have accumulated coins as crypto prices have risen. This build-up indicates a disbelief in the rally and a reluctance to buy, also known as a “wall of worry.”
Santiment says sharks are reluctant to invest in a bullish crypto-asset thesis after the recent rally.
“What we are seeing here is that over the last 2-3 weeks (despite the price growth of Bitcoin, Ethereum and others) they were not very keen on parting with their stablecoins and even did the opposite. This could be interpreted as disbelief in this rally, reluctance to buy.”
The crypto analytics firm also takes a look at the addresses of Ethereum (ETH) scaling solution, Polygon (MATIC).
According to Santiment, Polygon’s Token Age Consumed metric, which is typically used to detect local spikes, has a all-time high reached. The metric measures the number of tokens that change address on a given date multiplied by the time that has elapsed since the previous movement.
“The token age of MATIC has expired [metric] hit an all-time high, suggesting that older addresses were moving assets quickly. We can also see that Polygon’s average dollar age has also fallen, confirming that older, dormant addresses have just moved a large pile of coins.”
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Source: Crypto News Deutsch