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According to the analytical company Santiment, the on-chain data of the top two stablecoins by market value could give a hint as to when the cryptocurrency markets might accelerate for another price increase.
Critical Situation in Stablecoins!
In a new analysis, Santiment stated that analysts should monitor the supply of Tether (USDT) and US Dollar Coin (USDC) on exchanges. The reasoning behind this is that it may suggest that “something is developing” in the prices of cryptocurrencies. Santiment commented on the matter in their reports:
“Particularly, the supplies of USDT and USDC could be rapidly moved to exchanges, just as we saw with USDC in March, right before price increases across the market.”
The analytic firm also pointed out that analysts need to pay attention to whether the top 10 USDT and USDC addresses are adding more stablecoins. Furthermore, Santiment suggested that investors should monitor the average dollar investment age of Tether and USDC. The average dollar investment age is the weighted age of all tokens on the blockchain, based on their purchase price. The analytical company emphasized in their statements:
“The average dollar investment age is what we call a ‘validator’ metric. When the curve of this line starts moving downward, it indicates that any uptick in the crypto markets has been validated by idle money moving, aiming to further raise prices in the future. Additionally, when it comes to stablecoins, the movement of old cryptos lying dormant in wallets can usually be a very good sign.”
Ethereum Reports!
On the other hand, the analytical firm Santiment had released a new report on Ethereum (ETH), the leading smart contract platform. In its reports, the analytical company highlighted that Ethereum’s gas fees could potentially push the cryptocurrency to a breakout range of $1900. According to Santiment, this decrease in Ethereum’s transaction costs is a much-needed requirement, especially considering the sudden fee increase observed earlier this month.
