- A notable transition of assets into self-custody is witnessed among six Ethereum-based altcoins, hinting at a potential bullish uptrend.
- Santiment identifies a significant uptick in whale transactions for two additional low-cap crypto assets, amid a backdrop of declining Bitcoin chatter on social platforms.
The cryptocurrency ecosystem is a hotbed of dynamism, and the ongoing self-custody wave among select Ethereum-based altcoins is adding a bullish tint to the canvas. Crypto analytics behemoth Santiment has pinpointed eight altcoins demonstrating signs of potential upward price mobility. This assertion is grounded on the notable movement of assets from exchanges to self-custody, particularly concerning the native tokens of six decentralized platforms.
📉👍 If you are the owner of any $SUSHI, $REEF, $ELF, $BICO, $CRV, or $INJ, then you'll be happy to see that more & more of their supplies are moving into self custody. Historically, these kinds of major waves off exchanges are good for future prices. https://t.co/nS45eDkW1z pic.twitter.com/rhoGpfiosL
— Santiment (@santimentfeed) September 26, 2023
The Self-Custody Exodus
The narrative of self-custody isn’t a new one in the cryptoverse. It’s an approach that aligns with the sector’s ethos of decentralization, offering individuals complete control over their digital assets. The recent shift towards self-custody, as observed by Santiment, involves tokens from decentralized exchanges SushiSwap ($SUSHI) and Injective Protocol ($INJ), decentralized finance platforms CurveDAO ($CRV) and Reef Finance ($REEF), cross-chain protocol Biconomy ($BICO), and the delegated proof of stake blockchain Aelf ($ELF).
Historical data suggests a strong correlation between extensive self-custody migration and favorable future prices. This correlation roots from the basic economic principle of supply and demand. As assets move off exchanges, the available supply diminishes, often triggering a price uptick should demand remain constant or increase.
In addition to these six tokens, two other low-cap crypto assets, Linear Finance ($LINA) and Decentraland ($MANA), are showing an increased number of whale transactions. Despite a less-than-stellar price performance so far in 2023, the recent uptick in large-scale transactions for these assets might be the harbinger of a more vibrant market activity.
The current market sentiment, as discerned from social media chatter, illustrates a declining interest in Bitcoin discussions while altcoins are seeing a resurgence in engagement. This shift in focus is an exemplification of market greed, according to Santiment, and could be a forerunner for the bullish signals being observed on the on-chain data front.
As the fabric of the cryptocurrency market continues to evolve, the actions of informed and strategic investors often serve as a reliable weathervane pointing towards the sector’s imminent direction. The elevated self-custody and whale transactions trends are worthy of attention for anyone keen on deciphering the market’s cryptic yet fascinating language.