The overall crypto market cap dropped by 2.47% to $2.02 trillion over the past seven days as Bitcoin (CRYPTO: BTC) failed to find support above $50,000.
What Happened: Even as several altcoins experienced steep corrections, on-chain analytics platform Santiment noted that Ethereum (CRYPTO: ETH) was one of the few assets that were minimally impacted by the market-wide dip.
📊 #Ethereum is one of the few minimally impacted assets during this market-wide dip over the past 8 hours. Still above $3,100, read about $ETH's token circulation, mean dollar invested age, & sentiment to indicate why the asset is holding up well. t.co/mfUQjlid2z pic.twitter.com/IxltCmfGTa
— Santiment (@santimentfeed) August 26, 2021
Santiment found that even though Ethereum has been relatively boring compared to the monstrous upswings many other assets have seen, the same reasons make it less of a risk to hold as of now.
“Ethereum's token circulation has just exceeded two-month high levels. The amount of unique tokens moving on the ETH network showing an increase here is a promising sign that if it does drop back below $3,000 again, it may not be for long if circulation sustains itself up at these increased levels,” stated a Santiment analyst.
He also noted that ETH’s mean dollar invested age has been on the rise. However, over the past three days, this line has begun to dip lower.
“This is an extremely promising sign, as it indicates that dormant dollars that were invested in quiet ETH addresses are beginning to move once again,” he said.
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“Notice what Ethereum's price did from late February to early May on the left side of the chart. Long story short, when this line begins to dip down, good things happen. We will just need to see if the down-trend continues to avoid seeing a fake-out of just a few encouraging days here.”
Price Action: At press time, Ethereum was trading at a price of $3,133, down 3% over the past 24-hours. The coin had a trading volume of $17.6 billion and accounted for 18.2% of the market at the time of writing.