Buy Signals for ADA, PEPE, SHIB? Here is What New Santiment Tool Predicts for These Three Alts

On September 24, crypto analytics platform Santiment revealed an update to its ‘Asset Activity Matrix’ tool. The new feature includes ‘hot’ and ‘cold’ tabs, indicating the level of activity a network experiences, including on-chain and social activity.

A Santiment post read:

🥳 Our model, now more fittingly named the 'Asset Activity Matrix', has just been improved to indicate a new Hot & Cold tab to reveal how much the activity on a network is increasing or decreasing in #onchain & social activity. pic.twitter.com/6taaGuhGsl

— Santiment (@santimentfeed) September 24, 2023

Hot and Cold Assets

According to Santiment, the tool compares 90-day averages for assets to categorise them as either a ‘hot’ or ‘cold’ asset. An asset with what it calls ‘major current activity’ is classified ‘hot’, depicted by red squares. Conversely, a lack of activity, indicated by blue squares, indicates a ‘cold’ network.

The tool, which compares data for currently 180 altcoins, can be used by investors and traders to identify possible entry and exit points. For instance, ‘hot’ assets may be viewed as overvalued, suggesting a ‘sell’, while cold assets may indicate a ‘buying’ opportunity.

However, users should not solely rely on ‘hot’ or ‘cold’ indicators for making trades or investments. It is best to use this tool as a gauge to get an idea of trending topics rather than make financial decisions. Santiment recommends looking into why an asset is ‘hot’, for example if the price is surging. In a reply to a user post, Santiment clarified:  

That's correct, yes! Keep in mind there are exceptions to a network getting 'hot and it suddenly being a 'buy zone'. We recommend looking at whether the network is hot BECAUSE the price is surging, or whether

— Santiment (@santimentfeed) September 24, 2023

ADA Development Continues

While the Santiment post announcing the tool showed Cardano’s ADA, and meme coins Pepe (PEPE) and Shiba Inu (SHIB) as ‘cold’ assets, users should look to fundamentals.

Cardano is currently undergoing transformational stages, including network scaling and eventual full decentralization. Despite facing criticism for slow development and lacklustre price action, Cardano operates as a fully functioning blockchain with zero downtime. Whether to believe in its long-term success remains a decision for individual investors.

Introducing Shibarium

Shiba Inu has recently added utility with its layer-2 network Shibarium. However, the total value locked (TVL) lags behind the token’s USS4.3 billion ($6.7 billion) market cap. This suggests that while the token is popular, Shibarium may not have gained widespread adoption. Data from DeFi lama shows that TVL was US$1.47 million ($2.29 million) on August 29, but it has dropped to just US$613,000 ($954,000) as of the current date.

PEPE, A Pure Meme Coin

Unlike Shiba Inu, which attempts to provide utility beyond being a meme coin, PEPE’s purpose appears less clear. Launched to ‘make meme coins great again’, there don’t seem to be any plans for adding utility. PEPE may simply be a pure meme coin, and investors should exercise caution. According to PEPE.VIP, the official website states that “$PEPE is a meme coin with no intrinsic value or expectation of financial return. There is no formal team or roadmap. the coin is completely useless and for entertainment purposes only.”