There are new insights into the activity surrounding popular altcoins, including looking into active addresses and possible correlations with prices. While by no means providing conclusive data, there is tentative evidence that shows that certain investments are best made on certain days.
The blockchain startup incubation and cryptocurrency data platform LongHash has released a detailed blog post that examines the activity of various ERC-20 token addresses on different days of the week, and the potential impact it has on prices. The data offers some insight into how to time one’s entry and exit, which is sure to pique the interest of ardent cryptocurrency traders, as well as newcomers.
The post covers some of the most popular altcoins, which are often subject to 30% price changes in a single day. Particularly important for active cryptocurrency traders, altcoins give seasoned investors the opportunity to strengthen their positions, and many achieve appreciable returns once they have learned how the market operates.
The report, which took data from the TokenAnalyst API, offers some useful suggestions for new investors, such as entering on a day with low activity and exiting on a day with high activity. The post also emphasizes that there is no way to be certain if a particular trend will continue.
No Mid-Week Blues for the Crypto-Token Market
One of the most notable insights that the post offers is that major ERC-20 tokens tend to see most activity on Wednesdays and Thursdays, with Basic Attention Token (BAT) and Maker (MKR) having the highest average active addresses. Sundays seem to be a day of rest for traders, as none of the tokens analyzed ever recorded an activity high on this day of the week.
Both BAT and MKR are popular and expanding for their own reasons. The former’s associated Brave browser has quickly grown to become one of the most popular browsers and consistently adds new features while refining the browsing experience. The MakerDAO ecosystem is the largest contributor to the Decentralized Finance (DeFi) space, which now has nearly $1 billion in ETH locked up — with Maker claiming 60% of the market.
An Altcoin Rise Incoming?
One thing that has proven to be true over the past few years is that altcoins tend to rise as the price of Bitcoin rises. Many traders typically hold their capital in Bitcoin or stablecoins and attempt to time their investments with the rise of altcoins.
However, this is a challenge, given that there are many unknowable factors that influence an altcoins’ price. The high volatility and 24/7 nature of the market further add to the challenge.
Reports like these offer investors a little more clarity into the growth of altcoins, which had a solid January. Combined with other reports on the growth of the market, it is difficult not to consider that the ‘flippening,’ or at least a leveling in the market might occur in the near future.