- A Santiment analyst has said these tokens are in a good zone for investors who want to buy into trader pain.
- Optimism on Solana grows as development activity continues to rise.
In a recent YouTube video, the director of marketing at crypto analytics firm Santiment Brian Quinlivan highlighted a few altcoin ecosystems whose metrics show that they are set for a surge.
The metric in question is market value to realized value (MVRV). MVRV shows the average loss or profit of a crypto token’s coins in circulation at the current price. It helps indicate to willing buyers when the time is right to do so.
Uniswap (UNI)
Despite the number of daily active addresses on the ecosystem falling sharply (from 3,259 on October 29, up to a recent 836 active ones), Quinlivan reviewed the asset’s 30-day long MVRV and explained that it is currently at a good buying zone.
“We typically look for anything below 15% to be a good opportunity zone, and we definitely jumped way below 15% there… we are well into the opportunity zone still for Uniswap,” he said.
Aave (AAVE)
The analyst also found that AAVE is in an excellent historical time to buy as its MVRV is in the 15% opportunity zone. He added that trader pain on the asset could go on for much longer with a continuation of this rally, and traders should exploit this doubt.
Also, Quinlivan noted that AAVE indicates more optimism than Uniswap, adding that whales (1000 to 100,000 tokens) have shown an upturn since around January 22. He argues their accumulation is a good sign for key stakeholders.
Decentraland (MANA)
As one of the better performing altcoins among the top tokens, Quinlivan observed that MANA spiked by 40% in the nine days leading to February 1. However, MANA has since grown out of the 15% buying zone.
He also curiously observed that Binance and FTX stood out as traders on the two exchanges are shorting Decentraland. He explained this to be a good sign since the spikes coming from these massive shorts have to be liquidated at some point.
“It’s pretty cyclical, and right now, this is one of the most bullish metrics for MANA, because there’s such an immense amount of shorting that… these huge spikes are bound to be liquidated at some point because people shorting to this extent usually doesn’t go too well.”
Solana (SOL)
On smart contract platform Solana, Quinlivan noted that its development activity has been on the rise over the last six months. Its increasing number of daily GitHub submissions goes to shows that Solana’s team believes in improving the chain for long-term sustainability.
“The daily GitHub submissions is sitting at about a little over 500 a day right now, after… a year ago being at 190. So that’s a very good sign,” he said.