Cardano (ADA) Sees Increase in On-Chain Activity
Market intelligence firm Santiment has reported that Cardano (ADA) has reached a significant milestone in terms of on-chain activity. Long-term ADA holders have begun transferring a substantial volume of tokens, marking the most significant movement in over a year. Additionally, these holders have actively acquired nearly 44 million ADA tokens, valued at approximately $12.67 million, within just two weeks. Older ADA wallets holding between 100,000 and 10,000,000 ADA are now accumulating tokens again after a period of dormancy since April 2022.
Ethereum (ETH) Shows Signs of Upward Momentum
Santiment also provided insights into Ethereum’s market behavior. The firm noted that Ethereum is displaying increased upward momentum, supported by key metrics such as a decrease in the amount of ETH held on cryptocurrency exchanges. Santiment’s analysis suggests a divergence between Ethereum’s price and trading volume, indicating potential weakening momentum. However, investor confidence in Ethereum is growing as the supply of ETH on exchanges decreases. Social dominance and the MVRV 30D metric also indicate room for further growth before a potential market cooldown.
New Liquidity Key for Ethereum’s Growth
Santiment emphasizes the importance of a consistent flow of new liquidity entering the Ethereum market to sustain healthy price growth in the near term. The influx of new money via Tether (USDT) supports the notion that this liquidity is being used for market speculation. For Ethereum to maintain its upward trajectory, it will be crucial to continue attracting new liquidity. At present, ETH is trading at around $1,796.
Hot Take: Cardano Sees Surge in Token Movement While Ethereum Faces Potential Momentum Weakness
Cardano (ADA) has experienced a surge in on-chain activity, with long-term holders transferring a significant volume of tokens. Meanwhile, Ethereum (ETH) is showing signs of upward momentum, but Santiment’s analysis suggests potential weakening momentum due to a divergence between price and trading volume. However, investor confidence in Ethereum is growing as the supply of ETH on exchanges decreases. To sustain healthy price growth, Ethereum needs a consistent flow of new liquidity entering the market. The influx of new money via Tether supports this notion. Overall, Cardano’s token movement and Ethereum’s market behavior are key factors to watch in the crypto space.
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