Santiment stated that changes in the number of non-empty wallets in cryptocurrencies may indicate the upward potential of Bitcoin and 5 other altcoins.
On-chain analytics platform Santiment has provided important data on how changes in the number of active wallets on cryptocurrency networks can affect market participants’ sentiment and price movements. Santiment emphasized that a decrease in the total number of wallets on a network is usually an indicator of fear (FUD) and panic selling (capitulation) among new investors, which could be a positive sign for coin prices in the long term.
When the total number of wallets on a network decreases, it can often be a bullish signal for coin prices, as it is seen as a sign of FUD and capitulation from new investors. Given that there are far more small wallets than retail investors, the number of non-empty wallets is largely controlled by small investors.
This also shows that coins that become liquid are usually purchased by whales and large investors for long-term holding. Santiment stated that the number of non-empty wallets in the networks is largely determined by small investors, as the number of small wallets is much higher than the number of whale wallets.
The platform explained the changes in the number of non-empty wallets of leading cryptocurrencies in the last month as follows:
Bitcoin (BTC): +11,263 wallets (+0.02%)
Ethereum (ETH): +1,950,000 wallets (1.50% increase)
XRP Ledger (XRP): +88,261 wallets (up 1.61%)
Cardano (ADA): -34,931 wallets (0.78% decrease)
Dogecoin (DOGE): +109,410 wallets (+1.65%)
Chainlink (LINK): +991 wallets (+0.14%)
Santiment emphasized that the changes in the number of non-empty wallets are an indicator of the long-term strategies of the big players in the market (whales and large investors) and the important role of small investors in the market. The significant increases seen in assets such as Ethereum and Dogecoin were especially striking.
