With liquidity still low in most altcoins following the prolonged crypto bear market, token buybacks and burns have accelerated to attract more investors and ease the existing pressure. Most crypto investors’ attention has shifted to Bitcoin price action and the emerging metaverse projects tapping on NFTs and the Gamifi industry. Moreover, a recent Dappradar report found that gamifi accounts for about 40 percent of the total Web3 activities.
Santiment on Altcoins with Potential Bullish Outlook
According to market intelligence platform Santiment, some altcoins have left crypto exchanges into self-custody wallet addresses amid short-term market uncertainties. The identified altcoins that have recorded a sharp decline in exchange supply include Sushi (SUSHI), aelf (ELF), Biconomy (BICO), Reef (REEF), Curve DAO (CRV), and Injective (INJ).
According to the on-chain analytics firm, increasing altcoin withdrawals from crypto exchanges reduces the likelihood of future significant selloffs. Moreover, the increased accumulation amid bearish crypto sentiments means more investors are bullish in the long term perspective.
Ultimate Bullish Trigger
Having consolidated in the past 19 months, most crypto assets are looking into a profitable fourth quarter. From a Bitcoin four-year-cycle perspective, the crypto market is expected to turn bullish in October. Moreover, the possible worst-case scenarios have already played out in the past year following the collapse of several firms led by Terra Luna, FTX, Celsius, and Three Arrows Capital (3AC).
If the crypto market drops further in the coming months, next year’s halving event is expected to be the ultimate bullish trigger for the entire industry.
