With liquidity in most altcoins still low due to the prolonged crypto bear market, token buybacks and burnings have accelerated to attract more investors and alleviate existing pressure. The attention of most crypto investors has shifted to Bitcoin’s price action and the emerging metaverse projects leveraging NFTs and the Gamifi industry. Furthermore, a recent Dappradar report found that gamifi accounts for approximately 40 percent of total Web3 activity.
Santiment on Altcoins with Potential Bullish Outlook
According to market intelligence platform Santiment, some altcoins have left crypto exchanges in self-custody wallet addresses amid near-term market uncertainties. The identified altcoins that have recorded a sharp decline in exchange offerings include Sushi (SUSHI), aelf (ELF), Biconomy (BICO), Reef (REEF), Curve DAO (CRV), and Injective (INJ).
According to the on-chain analytics company, the increasing number of altcoin withdrawals from crypto exchanges reduces the likelihood of future significant sell-offs. Furthermore, increased accumulation amid bearish crypto sentiments means more investors are bullish on the long term.
Ultimate bullish trigger
After consolidating over the past 19 months, most crypto assets are eyeing a profitable fourth quarter. From the perspective of a four-year Bitcoin cycle, the crypto market is expected to turn bullish in October. Moreover, the possible worst-case scenarios have already occurred in the past year following the collapse of several companies led by Terra Luna, FTX, Celsius and Three Arrows Capital (3AC).
If the crypto market falls further in the coming months, next year’s halving is expected to be the ultimate bullish trigger for the entire sector.