REN - Are folks accumulating
Assets covered: REN
Metrics used: Network Growth, Supply on Exchanges, Historical Balance
Charts: h https://app.santiment.net/s/lonIRsqW
After a fall of -93.7% from its all-time-high of $1.80/REN, it's hard not to dabble in some accumulation for the long term it seems.
And from on-chain data, it's showing that this seems like a decent buy zone for new/returning participants.
Let's take a look.
Supply on Exchanges
The past month saw consistent increase to Supply on Exchange, which eventually saw price tanking too. No surprises there.
Following that, we observe some accumulation going on as Supply on exchanges decreased at the recent bottom. There was a sharp spike up as price bounced , but folks still scaling in following the dip.
As price continued to decline over the past two months, we are seeing strong spikes in Network Growth (new addresses) as new market participants enter REN.
The key utility for REN is for staking in Darknodes to earn fees and thanks to that, we can easily see where REN is going and how it relates to price action.
Here's the historical balance of REN's Darknode contract.
As the price fell since early October 2021, so did the amount of REN staking. Looks like most folks were looking to exit.
It was only until late March 2022, that behavior changed. As price topped out and declined, we saw more REN going into the staking contract, suggesting that folks likely accumulated or continues to scale into REN.
The staking contract now has more REN than it had 1 year ago.
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