Crypto analytics platform Santiment says an Ethereum (ETH)-based altcoin is showing signs of a potential rally based on on-chain data.
Santiment’s chief marketing officer, Brian Quinlivan, says that the interoperable blockchain game Illuvium (ILV) is showing a potentially bullish sign amid a sharp increase in on-chain transaction volumes.
A $14 million whale transaction, the largest since July 2022, occurred early thursday.
According to Quinlivan, the increase in Illuvium on-chain transaction volumes coincides with the interoperable blockchain game token price potentially bottoming out.
“Illuvium has been sinking fast since its big rally above $106 in early February. Now back below $47, there are concerns that the supply on exchanges has risen steadily since then, now sitting at 14.5%.
You will notice that on-chain transaction volume for the SIL network has skyrocketed as a result of this $14.0 million transaction, the highest level in approximately 14 months.
This could potentially be a bullish sign, considering it is occurring during what could be a plausible lower area for the price.”
Illuvium is worth $46.90 at the time of writing.
As for Lido DAO (LDO), Quinlivan says that while Ethereum’s liquid staking protocol has seen several major on-chain transactions this year, its supply on exchanges is relatively low for an altcoin.
“Lido Dao has had several very large moves on its network throughout 2023.
So much so that this massive transfer from one self-custody wallet to another has not caused a significant increase in transaction volume.
What we do know is that the bid on LDO exchanges is just under 6%, which is relatively strong for an altcoin.”
Lido DAO is trading at $2.01 at the time of writing.
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