Evaluating Crypto Market’s ‘Good & Bad Signs: BTC, ETH, ETC, MATIC

July has proven a lucrative month for the crypto after 2022’s first six months dragged most digital coins to abysmal depths.

July 18 saw the world’s leading crypto, Bitcoin, breaking past $22,500 before stretching higher during intraday sessions. That triggered massive leg-ups in the alt market, with Ethereum climbing beyond $1,600 to explore price levels never touched since June 12.

Santiment’s new July reports show the analytic firm discovered most digital tokens recorded gains within the past 30 days.

The report indicated that altcoins such as Polygon, Quant, Arweave, and Curve doubled their market caps over the past month. Moreover, the research highlighted the good and bad signals as crypto prices remain unstable. Let us analyze these signs.

Declining Ethereum Fees

The report revealed that fees for completing transactions on the ETH blockchain declined to December 2020 lows as markets battled bearish tendencies. What contributed to the gas fees drop?

Factors such as ETH losing approximately 80% from ATH, reduced address activity, and minor speculative fever within the NFT and DeFi protocols led to the ETH fees slump.

Santiment noted that such tendencies reveal the positive side of this year’s bear run. It added that the surging Ether prices would likely trigger a slight uptick in each transaction cost.

MakerDAO Avoids New Debts

Santiment revealed possible liquidation fears as another ‘good’ from bearish markets. For instance, MakerDAO recorded consistent debt declines during the bear markets. That’s due to risks related to massive debt levels.

Though most alts enjoyed significant price rallies amidst the bear regime, Santiment noted that the absence of market cap growth was a ‘bad’ signal as it indicated an inorganic growth.

It added that assets that have seen massive upticks include AR, KSM, ETC, which do not trigger broad market success whenever leading the pack.

The reports also perceived Bitcoin’s 30-day MVRV as another ‘bad’ sign for the market. It revealed that the 30-d MVRV gained more than 9.5% during the report preparation. The upswing shows the highest mid-term returns since March when Bitcoin stayed beyond $45K.

Though the current Bitcoin’s 30-MVRV stayed far from the danger zine of +15%, Santiment believed there are increased risks of investing in a token beyond its 0% resting average.

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