The Ethereum (ETH) ecosystem offers tokens with additional utility and influence. The lack of an overall altcoin market means buyers are more picky in 2024. A selection of Ethereum-based tokens showed whale accumulation and smart money buying.
A handful of Ethereum (ETH) tokens stands out, based on buying behaviors and shifts in big wallets. After a long meme token season, projects are once again drawing attention with the potential to generate fees or support decentralized products.
Based on Nansen smart money metrics, Ethereum activity shows some tokens stand out as an interesting bet, while others may be prepared for selling. Two trends are emerging from on-chain data: stablecoins are moving to other locations, suggesting potentially bullish scenarios. The other interesting token is BLUR, where instead of selling, there are signs of ongoing accumulation.
3/ 7D outflow #3$BLUR deserves a special mention. It seemed that after the end of season 3 on Blur and TGE $BLAST, there will be an active reduction of bags, but judging by the smart money chart in $BLUR, they are slowly gaining bags pic.twitter.com/pOcHKt2i8h
— Lecros (@smallcapenjoyer) July 16, 2024
At the same time, the STRK token may expect selling pressure, as Panthera Capital divested the asset in the past week. Smart money is becoming a more important metric, as overarching narratives often contain losing tokens.
Smart money and whale copying are instead aiming to uncover specific assets with potential. At the same time, narrative-based tokens are in the red overall, with an average negative return of -22% so far in 2024.
Individual tokens are also losing out to the focus on liquid staking, lending protocols and other simpler forms of passive income, instead of betting on a single risky asset. Individual tokens also have a shorter time span compared to previous years, especially after more than a million new assets were generated and traded with minimal liquidity pools.
Also Read: 5 Best Cryptos to Buy in 2024: BlockDAG, Ethereum, Polygon, Uniswap and AVAX
Interest in tokens resumed, as the value locked in Ethereum (ETH) decentralized finance recovered above $60B. The number of tokens also expanded in 2024, with most of the assets flowing into Uniswap. Ethereum-based tokens still offer utility, but there are new inflows into meme assets.
Overall, token activity reached a low point at the end of June. Based on blockchain statistics, for most of June, token holders that sold outnumbered buyers by 200%. Ethereum-based tokens went through a capitulation event in June. In July, selling and buying started out as more balanced, though accumulation is still cautious.
In July, sellers who liquidated all tokens went down to 40%, while others either partially held or accumulated new tokens. Around 30% of addresses for ERC-20 tokens are showing signs of accumulation mode. About 30% of the remaining activity for ERC-20 tokens belongs to new address acquisitions.
Smart contracts signal new batch of active tokens
Winners among Ethereum tokens can also be found among top smart contracts. As usual, USDT and USDC are near the top. Wrapped XRP, presented on the Ethereum network, has also grown its activity.
Inflows of new buyers and wallets have been noted for Cronos Coin (CRO), as the asset recovered to the highest price range in a month. Memecoin (MEME) and ZRX (ZRX) also saw an inflow of new users.
Despite peak activity, small wallet outflows have been found for Uniswap (UNI) and Compound (COMP). The list of tokens excludes outliers like Pepe (PEPE), which moves under a different narrative.
Ethereum tokens grow total market capitalization
Tokens on the Ethereum blockchain expand their value, and are up to a total valuation of 475M. In the past day, the value of ERC-20 tokens increased by a total of 4.75%.
Some tokens only perform within a short span, with rapid daily inflows of funds. The growth of those tokens reflects demand for fast appreciation, and the same strategy is used for Solana and Base tokens. Top Ethereum performers include BANANA, TRUMP, and MOG.
The current token rally follows the recovery of Ethereum (ETH) above $3,400. ETH is also viewed as a valuable reserve asset, inviting staking into its Beacon chain smart contract. The locked ETH is now close to 30% of the supply, and staked ETH tripled in the past two years, to above 43M tokens.
To tap the value of the ecosystem, ETH stakers are also turning to tokenized projects, especially those that can provide value and offer passive income.
Cryptopolitan reporting by Hristina Vasileva
