Yesterday we tried to evaluate possible market moves using crowd sentiment: https://insights.santiment.net/read/monday-crowd-vibes-7128
Now when US Monday trading session is over we might review onchain activity.
With 24h daily active address metric as a proxy.
Long story short, a large number of tokens is now seeing an increasing divergence between price action (up) and active addresses (down).
This is a warning sign, many divergencies now have to be reset by either a price dump or increase in activity.
What could be good to observe on many tokens for a rally is an opposite divergence, similar to MKR:
Until then, we might probably expect some gravity push down.
Charts layout: https://app.santiment.net/s/jvnjSOT2
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
A couple of weeks ago we have pintpointed a local market bottom using crowd sentiment: https://insights.santiment.net/read/dead-mentions-in-crypto-social-media-7116
So what's next?
We might want to have a look at recent trending topics:
The crowd doesn't seem to be neither excited (bullish), neither frightened (bearish).
Market is basically open to move in any direction at the moment.
To bring some clarity, we have prepared a chart layout to be published tomorrow. Need to see market activity through American Monday session first.
There is an increasing demand in self custody. People are going to be using decentralized exchanges and stablecoins as a proxy more often. And this is how we see stablecoins usage on Ethereum compared to Arbitrum.
1. USDT, active addresses compared on a shared axis. Red — USDT on Ethereum, yellow — USDT on Arbitrum:
2. USDT, active addresses in different scales, to see the trend. Red — USDT on Ethereum, yellow — USDT on Arbitrum:
- Stablecoin activity on Ethereum is way higher than on Arbitrum yet.
- Arbitrum stablecoin activity almost doubled, while it remain just slightly increased on Ethereum.
The above and few more charts for your review: