​Santiment analysts call seven altcoins with growth potential

The material is not an investment recommendation and is published for information purposes only.

What’s new? Experts at analytics firm Santiment have found that traders are actively shorting altcoins, and some assets may be ready to liquidate short positions. According to the analysts, seven coins may show a small breakout if they get momentum. These include DigiByte (DGB), Hedera (HBAR), Huobi (HT), Kava (KAVA), Kusama (KSM), Solana (SOL), and Zcash (ZEC). As of January 4, 13:45 UTC, assets are trading at $0,00799 (+1,27% in 24 hours), $0,0385 (-1,79%), $5,19 (-0,3%), $0,617 (-2,83%), $23,82 (+4,25%), $13,48 (+12,61) and $40,70 (+1,24%), respectively.

📊 Traders are aggressively shorting #altcoins today, and some assets could be primed for #short liquidations. Based on extreme bets being placed on prices going down, $DGB, $HBAR, $HT, $KAVA, $KSM, $SOL, & $ZEC would be candidates for small breakouts if #alts get any momentum. pic.twitter.com/SuFz4obrmL — Santiment (@santimentfeed) January 3, 2023

More details on assets. DGB is the native token of the blockchain platform DigiByte, founded in 2013. DGB tokens enable the operation of decentralized applications (DApps) and smart contracts supported by the platform. DigiByte uses the Proof-Of-Work (PoW) consensus algorithm and supports several mining protocols.

HBAR is the token of the Hedera blockchain that applies directed acyclic graphs (DAGs) without grouping transactions into blocks. This technology makes it possible to achieve high throughput, up to 10 000 transactions per second (TPS), and stable energy efficiency, the developers say.

HT is a native token of the centralized crypto exchange (CEX) Huobi. The asset is used to receive fee discounts, as well as additional rewards and bonuses.

KAVA is the governance token of the Kava network integrated with the Cosmos cross-chain communication protocol (IBC), which runs on the Proof-of-Stake (PoS) consensus algorithm based on Tendermint. KAVA can be hosted by validators or delegated to validator nodes.

KSM is the token of Kusama, a parachain of the Polkadot blockchain platform. Developer activity on the network reached an all-time high in October. In total, 66 blockchains operate on Polkadot and Kusama.

SOL is the token of the Solana blockchain platform. Ethereum co-founder Vitalik Buterin predicted Solana’s prosperity on December 30, citing the fact that the project has gathered a community of qualified developers around itself and got rid of mercantile investors. Thus, one of Solana’s biggest investors is Alameda Research, part of the bankrupt FTX Group.

ZEC is the token of the decentralized and anonymous payment system, which is an advanced fork of Bitcoin.

Santiment analysts previously found that the number of large transactions involving Litecoin (LTC) and Binance crypto exchange’s coins, Binance Coin (BNB) and BUSD stablecoin, rose sharply in the second half of December 2022.