FTX, Synthetix, PAX Gold Heat Up Despite Crypto Sell-Off

As cryptocurrency markets face another week of broad declines, blockchain analytics firm Santiment has identified several altcoin networks showing unusually strong on-chain activity, a potential early signal for buy-the-dip opportunities…

In a new analysis, Santiment analyst Brian Q used the firm’s proprietary Activity Matrix to show which networks are “heating up” or “cooling down” compared with their three-month averages.

Measuring Blockchain Vital Signs

Santiment’s Activity Matrix measures the “heat” of blockchain networks by tracking eight key indicators of activity and sentiment

These include active addresses, network growth, whale transactions, social dominance, exchange flows, sentiment balance, and two metrics showing how long coins stay idle or move.

Each network’s latest readings are compared with its 90-day average. A network trending above average is labeled “hot”, while one below trend is “cold”

According to Santiment, sudden spikes in network “heat” can reveal early signs of renewed investor interest or accumulation, even when prices are falling.

FTX, Synthetix, and PAX Gold Among the ‘Hottest’ Networks

Santiment’s latest data shows FTX, Synthetix, PAX Gold, WAX, and OriginTrail leading the pack of “hottest” blockchain networks, with activity levels well above their three-month averages. Euler, XYO, YFI, Status, and Bounce also recorded notable spikes in user and transaction activity.

In contrast, networks such as Maker, Nexus Mutual, Lido DAO, Rocketpool, and Staked Ethereum ranked among the “coldest,” showing a drop in engagement and signaling limited potential for short-term recovery.

Network Activity as a Reversal Indicator

Santiment’s analysis suggests that spikes in on-chain activity, from whale transactions to wallet growth and exchange outflows, often come before market reversals.

“If a coin is seeing a hot network, it has a high probability of seeing a turnaround,” analyst Brian Q noted, adding that assets showing strong network activity during price drops tend to recover more quickly.

By contrast, coins with weak engagement in a downturn are less likely to bounce back soon.

Why This Matters

Tracking on-chain activity can give investors an early glimpse of which altcoins are likely to rebound during market dips.

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People Also Ask:

What is Santiment’s Activity Matrix? Santiment’s Activity Matrix is a data tool that tracks on-chain and social metrics across blockchain networks to identify which coins are “heating up” or “cooling down.”

Why is tracking on-chain activity important for investors? On-chain metrics provide insights into investor engagement and token movement, helping traders identify early opportunities, even when market prices are falling.

Is this approach suitable for long-term investing? While useful for spotting short-term buy-the-dip opportunities, the Activity Matrix should be used alongside other fundamental and technical analysis for long-term investment decisions.

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