TRON, Litecoin, EOS – What sentiment scores don’t tell you
When it comes to understanding the altcoin movement in an extremely bullish/bearish market, anyone’s guess is as good as it gets because it is extremely difficult to gauge the length of recovery/corrections. While the collective market is presently falling, a few altcoins have been seeing high sentiment scores of late.
In fact, according to a report shared by Sentifi.com with AMBCrypto, Tron topped last week’s sentiment charts with a score of 39 among the top five. Following TRX, EOS and Litecoin filled the 2nd and 3rd spots with a score of 33 each.
While the high sentiment scores are fine, we will analyze the market further to understand if these assets actually facilitated positive moves in the market over the past week.
Tron, EOS, Litecoin – The unlikely trinity?
Right off the bat, the biggest breaking news for EOS was ByBit finally launching spot trading pairs for the asset. The significance of this update is eye-catching, but it was the biggest one. For Litecoin, there were absolutely no updates on the development front but for Tron, the trend was a little different.
Last week, Tron’s network registered a new all-time high in daily transactions. In fact, data from Tronscan.org suggested that the network had registered 9,278,050 transactions in a single day.
From a long-term perspective, the daily transaction count was observed to be up by 522% year on year. Therefore, as far as Tron is concerned, the development side still makes sense.
Now, when on-chain metrics are looked at instead, it is clear as day that the volumes of all three assets are leagues away from their previous highs in 2021. The same perspective is clear when the daily price charts are looked at as well. Tron, at press time, was tumbling towards its February valuation and EOS was on a similar path too. Finally, Litecoin seemed close to shaving off its entire gains of 2021 yet again.
So, where is the navigation?
Without taking away too much credibility, where credit is due, Tron and EOS definitely have registered higher development activities over the past few days. Litecoin, on the contrary, has failed to deliver these levels, relative to the other aforementioned assets.
What inference can be made then?
Well, the point remains that sentiment is a subjective index and it can only be properly analyzed when other metrics are taken into context. Right now, TRON and EOS do somehow justify their top ranks in terms of sentiment, but the case cannot be made for Litecoin.