Crypto analytics firm Santiment is watching closely how different sectors of the crypto market are performing, and they’ve noticed something interesting.
Bitcoin and Layer-1 Projects Are Driving the Rally
Santiment says that increased volume in Bitcoin and layer-1 projects (like Ethereum) has been a key driver of the recent crypto rally. They believe this is a sign of cautious optimism from traders.
Memecoins Are a Warning Sign
On the other hand, a surge in volume for memecoins is a warning sign. Santiment sees this as a sign of greed taking over after a market recovery, which could lead to a price drop.
Solana’s Rise Fueled by Doubt
Solana (SOL) has been on a tear recently, and Santiment believes this is because traders are still unsure about its performance. They think SOL could continue to climb as long as this doubt remains.
In short, Santiment believes that volume spikes in Bitcoin and layer-1 projects are good news for the crypto market, while memecoin volume spikes are a cause for concern.
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