Crypto analytics platform Santiment is saying that one Ethereum (ETH)-based altcoin is showing signs of a potential rally based on on-chain data.
Santiment’s director of marketing Brian Quinlivan says that the interoperable blockchain game Illuvium (ILV) is flashing a potentially bullish signal amid a sharp rise in on-chain transaction volumes.
A $14 million whale transaction, the largest since July of 2022, occurred early Thursday.
According to Quinlivan, the spike in Illuvium’s on-chain transaction volumes is coinciding with the token price of the interoperable blockchain game potentially bottoming out.
“Illuvium has been sinking rapidly since its huge ascent above $106 in early February. Now back below $47, there is a concern that the supply on exchanges has steadily risen ever since, and now sits at 14.5%.
You’ll notice that the on-chain transaction volume for the ILV network has skyrocketed as a result of this $14.0 million transaction, the highest level in about 14 months.
This could potentially be a bullish signal, considering it’s happening during what could be a plausible bottom area for the price.”
Illuvium is worth $46.90 at time of writing.
Turning to Lido DAO (LDO), Quinlivan says that while the Ethereum liquid staking protocol has witnessed several large on-chain transactions this year, its supply on exchanges is relatively low for an altcoin.
“Lido Dao has had several very large movements on its network throughout 2023.
So much so that this massive transfer from one self-custody wallet to another has not brought a significant spike in transaction volume.
What we do know is that the supply on exchanges for LDO is just under 6%, which is relatively strong for an altcoin.”
Lido DAO is trading at $2.01 at time of writing.
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