Crypto
Ethereum, LINK and Ren: Why these 3 Altcoins could outperform BTC
The latest report conducted by Santiment showed that there are three altcoins that could outperform Bitcoin from a short-term perspective. Santiment’s report is based on three indicators: the Network Value to Transactions Ratio (NVT), the Daily Active Addresses and the Sentiment Volume Consumed. BTC received only 2 points for the NVT indicator, Ethereum 5 points and LINK got 9 points.
In the last two months, a significant decline in Bitcoin dominance could be seen. While the value on May 15th was still at 69.60%, it dropped to around 62.60% by July 12th. That means that many Altcoins perform better than BTC. However, considering that there are more than 5,000 Altcoins, the question arises as to which coins exactly should outperform Bitcoin. The range extends from the well-known old coins like Ethereum to the new top performers like Chainlink.
Find out more details about Santiment’s latest report and read the most important financial headlines with the Born2Invest mobile app.
Santiment underlines the feeling of the Altcoin season
First of all, the report presented by Santiment is about a so-called short-term outlook. This means that all statements refer to a short-term period. And for this short-term period the analysis company now sees the Altcoins ETH, Link and REN in particular at the forefront.
The report started with a brief summary of the situation. While the Bitcoin share price is quoted largely unmoved in the price range of $9,000 – $9,500, many Altcoins in particular are showing strong gains. Santiment said that Chainlink (LINK) has the greatest potential.
Chainlink as winner ahead of Ethereum and REN
In the report presented, Santiment used 3 indicators to assess the short-term situation of the Altcoins. In addition to the positive indicators for Chainlink, the company also attested that the Ethereum Blockchain-based token has a bullish signal due to its use in China’s National Blockchain Service Network (BSN). After this news was made public on July 8th, the LINK share price recorded strong gains.
The price of Chainlink has risen from around $4 at the beginning to the current $6. That makes LINK one of the best performers of the last 30 days.
In addition, the company said that Ethereum and REN could be further candidates for outperformance. As mentioned above, 3 indicators were considered for this. Let’s take a look at which ones exactly are behind them.
NVT, DAA and Sentiment Volume Consumed as indicators
The first indicator examined is the Network Value to Transactions Ratio (NVT). That is a metric that expresses the volume of transactions divided by the number of coins/tokens in circulation in relation to market capitalization. This is done over a certain period of time. In this case it is the 3-day average.
The second indicator is the Daily Active Addresses in relation to price divergence. Simply put, this is the price dynamics in relation to the number of active addresses. The third parameter is called Sentiment Volume Consumed. This is about the measured “sentiment” on Twitter.
Now let’s have a look at the ratings for Bitcoin, Ethereum, LINK and REN. For each indicator, the company assigned a numerical value of 0-10, which varies between maximum bearish (0) and maximum bullish (10).
LINK before Ethereum, REN and Bitcoin
BTC received only a value of 2 for the NVT indicator, while the DAA value was 5 and the value for Sentiment Volume Consumed was 6.5, giving a total value of 4.5, which Santiment considered a neutral rating.
Ethereum itself received 5 points for NVT, 8 points for DAA and 7.5 for SVC. This results in a total score of 6.8, which Santiment rated as bullish. Ethereum received the second best overall score after Chainlink.
LINK itself got 9 points in NVT. 5.5 points were awarded for DAA and 7 points for SVC. This resulted in a value of 7.2.
REN got 8 points for NVT, 7.5 points for DAA and only 3.5 points for SVC. This results in a total score of 6.3, which is still bullish in total.
Conclusion: A short-term outperformance is possible
The Santiment report showed that the 3 cryptocurrencies Ethereum, Chainlink, and Ren offer the short-term potential to outperform the top cryptocurrency Bitcoin. However, it is important to understand that these figures only provide a short-term outlook and are not a long-term trading recommendation.
__
(Featured image by WorldSpectrum via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
-
Crypto1 week ago
US Government Transfers $1.9 Billion worth of Bitcoin to Coinbase
-
Fintech2 weeks ago
Bitpanda Introduces Over 500 Cryptocurrencies – A Milestone for the European Crypto Market
-
Crypto5 days ago
Bitcoin Surpasses $100,000: A Landmark Achievement and the Journey Behind It
-
Crowdfunding1 week ago
Bizplace and Italian Tech Alliance Publish the Report on the Performance of Equity Crowdfunding Issuers