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.
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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.
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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.
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