Aurelie Barthere, the principal analyst at on-chain analysis firm Nansen, shared a recent market prediction for crypto assets. Barthere believes major cryptocurrencies like Bitcoin, Ethereum, and Solana could potentially outperform meme coins as the market recovers.
This projection is based on a comprehensive analysis of various factors, including on-chain data, Stablecoin market capitalization, fee analysis, and overall ecosystem growth indicators.
Risk-On Sentiments and Crypto Market Trajectory
According to Barthere, the recent crypto sell-offs have reduced risk-on sentiments among traders. This has led to a pronounced negative twist in return distribution.
This shift in sentiment has caused investors to become more risk-averse, potentially favoring established major cryptocurrencies over riskier assets like meme coins.
“Our analysis suggests that the recent crypto sell-off has reduced risk-on views among traders, leading to a noticeable negative twist in return distribution,” Nansen stated.
Barthere highlighted, “As the market recovers, we anticipate a more subdued trajectory, potentially centered around major tokens.” The analyst’s prediction is further supported by technical price patterns that indicate crypto prices are oscillating between consolidation and further correction.
This market volatility has been influenced by various factors, including strong earnings reports from tech giants like Alphabet and Microsoft. These reports have exceeded expectations, particularly in artificial intelligence (AI) and cloud services.
Nansen’s “Research Weekly” report, published on April 28, revealed sustained growth in the crypto ecosystem. The peak in cross-chain fees aligning with crypto price actions confirms this.
This surge in cross-chain activity suggests increased adoption and usage of decentralized applications (dApps) and protocols across various blockchain networks.
One key indicator of this growth is the higher Stablecoin market capitalization, which signifies increased liquidity and demand for stable digital assets within the crypto space.
Stablecoins play a crucial role in facilitating transactions, lending, and trading activities, and their market cap growth reflects the expanding ecosystem.
Cross-chain Fees and Blockchain Performance
Cross-chain fees reached their peak in March, coinciding with the movements in crypto prices. This trend highlights the increased interoperability and interconnectivity between different blockchain networks.
This enables users to seamlessly transfer assets and leverage various protocols across multiple ecosystems. Within this ecosystem, Solana (SOL) has preserved its fee market share, indicating sustained usage and activity on its network.
Meanwhile, Base has emerged as a strong contender, gaining significant traction and attracting users to its platform. However, Arbitrum, a prominent Ethereum Layer 2 scaling solution, has seen a decline in its fee market share.
This could be attributed to various factors, such as network congestion, shifting user preferences, or the emergence of competing solutions.
While the de-pegging of Renzo Restaked ETH that occurred recently did not significantly impact the price of other staked tokens, analysts at Nansen are monitoring the market for significant de-leveraging.
Excessive leverage can amplify market movements and increase systemic risk, which could lead to cascading liquidations and potential contagion effects.
As such, the level of leverage in these staked token protocols is being closely watched to assess potential risks and vulnerabilities. In addition to on-chain data and ecosystem growth indicators, external factors also influence market sentiment.
Strong earnings reports from tech giants like Alphabet and Microsoft have exceeded expectations. This is particularly evident in artificial intelligence (AI) and cloud services, which have provided a positive boost to the overall market sentiment.
These encouraging results from major tech players could potentially boost investor confidence and contribute to a more favorable market environment. This could potentially benefit established cryptocurrencies like BTC, ETH, and SOL.
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