Connect with us

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.

Published

on

This picture show a couple of cryptocurrencies.

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.

SEE ALSO  Georgia’s Tift County experiences spike in flu cases

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.

SEE ALSO  Catastrophic drop in cryptocurrencies looms

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.

Valerie Harrison is a mom of two who likes reporting about the world of finance. She learned about the value of investing at a young age upon taking over her family's textile business when she was just a teenager. Valerie's passion for writing can be traced back to working with an editorial team at her corporate job, where she spent significant time working on market analysis and stock market predictions. Her portfolio includes real estate funds, government bonds, and equities in emerging markets such as cannabis, artificial intelligence, and cryptocurrencies.