According to CryptoPotato, crypto analytics platform Santiment has reported that the ratio of Bitcoin discussions among market participants has dropped to a three-month low, as traders have shifted their focus to several altcoins. Traders are reportedly afraid of missing out on pumps of smaller crypto projects and have sidelined Bitcoin to concentrate on them. Santiment revealed that smaller projects such as Loom Network (LOOM), Cream Finance (CREAM), and the Solar blockchain (SXP) have experienced surges in their chats and discussions, indicating greed among market participants.
As a result of this focus, the native assets of these projects, LOOM, CREAM, and SXP, have recorded significant gains over the past few days. Within one week, LOOM has skyrocketed by over 144% to $0.11, CREAM soared by 65% to $17, while SXP spiked 2.5% and was trading at $0.28 at the time of writing. The assets have also gained millions of dollars in market capitalization. In addition to LOOM, CREAM, and SXP, the native assets of decentralized finance aggregation layer Frontier (FRONT), layer-2 blockchain ImmutableX (IMX), and decentralized oracle network Chainlink (LINK) are also outperforming the crypto market.
On the other hand, Bitcoin (BTC) appears to be in a precarious situation as liquidity and trading volume have dwindled. Since Q1 2023, a small amount of BTC has been circulating on exchanges. As of August, the asset's supply on trading platforms had declined to levels last seen in December 2017. CryptoPotato reported that dwindling market liquidity is one of the major factors restricting BTC's price growth. Bitcoin's spot and derivatives trading volume have declined by 94% and 73% since March 2024. Meanwhile, Santiment found that the number of addresses holding less than 100 BTC – about 41.1% of the asset's supply – has reached a new all-time high.
