The cryptocurrency market has been in a prolonged downturn for the past two months, pushing retail traders to the sidelines.
However, new data from blockchain analytics firm Santiment suggests that select altcoins are showing signs of strength, signaling a shift in trader sentiment.
While Bitcoin continues to trade within a narrow range of $78,000 to $84,000, certain large-cap altcoins are quietly regaining strength. According to Santiment’s latest Activity Matrix report, XRP, Binance Coin (BNB), Tron (TRX), and Stellar (XLM) have been outperforming Bitcoin in price dominance.
These projects are showing increased network activity, indicating renewed investor interest despite broader market struggles. Combined with the strength seen in these tokens, tokenized treasuries have also been surging.
Altcoins Are Experiencing Lower Network Activity
Santiment’s analysis indicates that many cryptocurrencies are experiencing their lowest network activity levels of the year:
Many retail traders, in particular, have either dropped out of crypto or are just leaving their coins alone until markets become a bit less depressing for them. So it’s no surprise to see speculative driven assets, in particular, seeing some of their ‘coldest’ (lowest network activity) days of the year at the moment.
However, a few have skipped the trend. Networks with improving address activity, social sentiment, and whale transactions may be primed for stronger recoveries. For instance, Dogecoin has seen the highest rise in unique address activity, with active addresses increasing by 34% over the past two weeks, signaling a surge in user transactions. It should be noted that similar trends of user activity have been seen with Pi Network.
Similarly, PAX Gold (PAXG) has recorded notable network growth, with a 27% increase in transaction volume, suggesting increasing adoption as a hedge against market volatility. Meanwhile, Magic Token (MAGIC) has led in whale transactions exceeding $100,000, with a 41% jump in large-value trades, hinting at accumulation by major stakeholders.
Social engagement remains a key factor in crypto market movements, and Santiment’s data reveals that Audius (AUDIO) and UMA (UMA) have dominated discussions across major platforms. UMA has recorded the highest increase in social dominance, reflecting a heightened level of interest among traders and investors.
Santiment’s findings indicate that while many speculative assets remain in a cooldown phase, certain altcoins are positioning themselves for a turnaround. These assets could be among the first to benefit from a broader market recovery.
