A recent Santiment report shows that ETH, BAND and metaverse coin ENJ, notably AXS, have been in a heavy accumulation phase in recent days. According to the firm, the accumulation should not be perceived as altcoin projects going into an uptrend, but the confirmation of the Russia-Ukraine conflict that cryptocurrencies are preferred as the “safe haven” confirms that the market will move in this direction.
Santiment report shows heavy accumulation in 5 altcoin projects
As the world reacts to Russia’s escalating war with Ukraine, analytics firm Santiment is assessing the stocks of the crypto market. In a new Insights blog post, Santiment shared statistics on the buying and selling of more than 50 altcoins/tokens. Gaming cryptos Enjin Coin (ENJ) and Axie Infinity (AXS) and dominant smart contract platform Ethereum are among the most popular cryptocurrencies (ETH). Decentralized crypto lending and borrowing protocol Compound (COMP) and decentralized cross chain Band Protocol (BAND) are other altcoins popular among crypto whales. Santiment interprets these statistics as follows:
Whales have stepped up to cheaper prices by accumulating massive amounts of ENJ, AXS, COMP, BAND and ETH. Obviously prices have rebounded pretty quickly, but that doesn’t guarantee the trend will continue.
Markets fell overall in response to the military conflict, but Santiment believes prices will rise once investors recover from their initial shock:
We certainly know that there is a tremendous grain of truth behind the war that has dragged down cryptocurrencies, stocks and other markets in the event of a Ukraine-Russia conflict. However, as we’ve seen in the two years with the pandemic, once the initial shock has passed, there’s usually a big price turnaround.
Bitcoin has proven to be a “safe haven”
Santiment concludes their analysis by highlighting the unrealized ambition of Bitcoin investors that leading crypto can join precious metals as a “safe haven” in times of turmoil. In this regard, the statements in the report were as follows:
Gold has long served as a ‘safe haven’ for investors in times of crisis. And with the rise of Bitcoin, there is growing optimism that the cryptocurrency can establish itself as a safe haven in its own right. However, from a macro point of view, this has not happened yet.