'Alt season' rumors, DeFi token pumps and our new Age Consumed template | Santiment Weekly Brief

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Ibis
Jun 14, 2020

This post is a collection of some of the top insights and market analysis created by the Santiment team and community members in the last week.


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1. Is the altcoin season *really* here?

Bitcoin market cap dominance, last 1 year

While Bitcoin continues to trade sideways, the market had seen a number of high-profile altcoins like ADA, KNC and MKR all breaking out in the past few weeks.


So many coins are pumping, in fact, that we’re already hearing talk of a full-blown ‘altcoin season’!


“Market movements are reminiscent of late 2017” reads one recent article. “This is by far the closest we have been from a technical standpoint to an alt season starting”, argues a popular TA analyst.


So...are the rumours true? In our latest report, we analyze the main arguments for a looming alt season, discuss the recent changes in Bitcoin’s market cap dominance and reveal the shared on-chain patterns in many of the recent breakout coins.


Check out the full analysis:


Read our ‘Altcoin Season’ report


2. Spotting outliers with our new Token Age Consumed template

Token Age Consumed comparison, last 90 days (Source: Sansheets)

Token Age Consumed (TAC for short) is an extremely versatile on-chain indicator which tracks the movement of dormant coins and indicates when ‘strong hands’ are looking to sell.


Most of the time, spikes in Token Age Consumed point to major shifts in the behavior of long term holders, and tend to precede increased volatility in the coin's market cap.

To help you spot these market outliers, our latest Sansheets template highlights the largest TAC spikes for different high-profile tokens and the impact they have on their short-term price action.


In playing with the new template, we even found some very curious correlations between BNB’s biggest Token Age Consumed spikes and the price of Bitcoin:


“With a total token consumption of 1,988,929,888 BNB on June 26, 2019, this was very obviously the highest token age consumed of the top tokens. But more significantly, it correlated perfectly with a nearly 2.5 year high for Bitcoin.”


See our TAC template in action:


Check out our new Token Age Consumed template

3. A week in crypto, as told by Santiment

Catch the call every Friday on our Youtube channel

Each week, the Santiment team and community members share their most interesting findings and analysis using a combination of our on-chain, social and development data.

In our latest video, we talk about:

  • How you could have timed Bitcoin’s latest bottom
  • Comparing volume and on-chain trends between BTC and the rest of market
  • Is the fundamental support for an ‘altcoin season’?
  • Shared on-chain patterns in recent breakout coins
  • and much more

All of the tools and metrics featured in the video can be found on Sanbase Pro and Sandata. Sign up today and get full access to all the metrics we discussed in this week’s call!

Watch our latest Community Call


4. Why are so many DeFi coins pumping? (feat. LRC and KNC)

LRC's spent coin cost, last 2 years (Source: Sanbase)

Despite Bitcoin and Ethereum’s lethargic start to the month, a number of DeFi-related coins including KNC, LRC, ZRX, MKR, AAVE and others took the market by storm in the past few weeks.


This week, we’ve done a deep dive on two of them in particular - KNC and LRC - breaking down the coins’ network activity, holder behavior and social media sentiment leading up to their recent pumps.


Want to make sense of this ongoing series of DeFi pumps? Start with our social and on-chain analysis of the LRC pump, then read our full breakdown of KNC’s monster 40% rally.

Both reports can be found on our Community Insights page, available to all Sanbase Pro subscribers!

Read our latest Community Insights


BTCLRCKNCADABNB
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Ibis
Jun 14, 2020

Thanks for reading!

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Assets from this insight

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BitcoinBTC

$ 9034.56

1.16%in last 7d
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LoopringLRC

$ 0.101029

31.54%in last 7d
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Kyber NetworkKNC

$ 1.60

45.04%in last 7d
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CardanoADA

$ 0.096126

19.12%in last 7d
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Binance CoinBNB

$ 15.39

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