Blockchain analytics firm Santiment is identifying what it sees as the five Ethereum-based (ERC-20) assets that have recently shown continued strength in terms of address activity.
Santiment filters out any low-volume coins and includes only the top 200 cryptocurrencies on CoinMarketCap.
The first coin on Santiment’s list is Small Love Potion (SLP). SLP tokens are earned by users who play the blockchain-based game Axie Infinity and can be used to generate or breed new digital pets called “Axies.” According to Santiment, SLP’s address activity could be a strong bullish signal given its divergence with price action.
“A spike in SLP address activity is very impressive. Its absolute value is overwhelming! [32,000] Ethereum addresses interacting with this coin daily. Creating [the] strongest bullish divergence with price dropping 10% last day.”
At time of writing, SLP is trading at $0.31, according to CoinMarketCap.
Next on Santiment’s list is Status (SNT), which is a mobile and desktop operating system with a decentralized browser featuring a messaging system. SNT allows users access to Ethereum-based decentralized applications (DApps). According to Santiment, SNT is another crypto asset with surging active addresses.
“Active addresses growing along with price. It’s a good sign. Nothing worrying here.”
Third on Santiment’s list is the crypto lending platform Nexo. Santiment says that although Nexo’s address activity remains strong, the recent drop could possibly indicate that address activity has topped out for now.
“On one hand, we can see a nice bullish divergence between increasing address activity and relatively stagnant price. On another hand, active addresses could break their uptrend and drop from here.”
The next asset Santiment analyzes is The Sandbox (SAND), a virtual world where users can mint, buy and sell virtual experiences, such as games, art or events. According to Santiment, upticks in SAND’s address activity have previously signaled a drop in price.
“What do we see here. Some sort of a pattern. 1) Address activity spikes once in few days. 2) Price tops before. If history repeats itself, current uptick is a sign of ongoing price correction.”
Last on Santiment’s list of Ethereum tokens with the strongest address activity is Decentraland (MANA). Decentraland is an Ethereum-based blockchain whose users can create, buy or monetize virtual reality applications. The crypto insights firm says that MANA’s address activity appears to have hit a top for now, which might be a prelude to a correction.
“Addresses spike looking like [it’s] finished already. Perhaps looking like a top sign, according to its historical patterns. Price might be in danger.”
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