The most searched keyword for all crypto researchers in the past 24 hours has been “crypto collapse” and yet some cryptocurrency traders are still making big moves. According to the data, smart money is flowing into the altcoin market, which includes non-fungiable tokens (NFT). Here are the details…
Money goes to this altcoin market according to Nansen data
Data from blockchain analytics firm Nansen shows daily net profit and loss for NFTs trading all smart money addresses. Since April 1, there have been 27 days of profitable NFT trading and nine days of negative returns for smart money wallets. Nansen considers a wallet to be “smart money” if it is “historically profitable”. Since April 1, the smart coin has invested 4,864 ETH in NFT trading, making a total profit of 17,581 ETH and netting 12,717 ETH.
It is clear that not every trade of the smart coin is profitable, as indicated by a few red bars. The biggest loss for smart money wallets trading NFT was on May 1, the day Yuga Labs released the Otherdeed NFT collection, when investors spent more than 64,000 ETH on transaction fees alone. In the past 24 hours, $2.18 million worth of rETH and $460,000 worth of aSTETH have been poured into wallets classified as “smart money” by Nansen.
Ethereum remains attractive for investors
Although the “Fear and Greed Index”, which examines various factors such as volatility, volume, dominance and search engine trends to capture market sentiment, indicates that we are in an “Extreme Fear” era, smart money traders don’t sit still, given ETH’s staking derivatives rETH and aSETH savings. Smart money inflows of rETH and asSTETH demonstrate the attractiveness of ETH staked for smart money at a time when regular market participants are worried.
In the same 24-hour period, gOHM worth roughly $2.8 million, the largest outflow among Nansen-tracked tokens, from a smart coin address labeled “Smart LP: 0x413” output. At the same time, $2.2 million worth of OHM entered the same wallet.