Volume surges in one major digital asset sector have dramatic impact on future cryptocurrency prices, Santiment says

Renowned analytics firm Santiment says the surge in volume in one cryptocurrency sector was a precursor to the market-wide gains over the past month.

Santiment says it looks at volume spikes in different cryptocurrency areas to see which ones could be indicative of future price increases.

According to the company, the current cryptocurrency rally began on July 8 as investors poured capital into Bitcoin (BTC) and Layer 1 projects.

“All the biggest volume increases from the last month, illustrated across sectors.

Growth in Bitcoin volume and Tier 1 assets leads to future cryptocurrency gains.
The growth in the volume of AI (Artificial Intelligence) and Big Data cryptocurrencies is neutral.
Memecoin volume surge leads to peaks.”

Based on Santiment’s chart, the spikes in volume in Bitcoin and Layer 1 projects are a sign of cautious optimism from traders. Meanwhile, the surge in volume in memecoin is a sign that greed is taking over after a big market rally.

As for Solana (SOL), Santiment believes the Ethereum (ETH) rival will continue to rally as long as investors doubt its performance.

“The Solana faithful have been rewarded for their patience as prices have risen +33% since July 4. This increase is fueled by the crowd’s doubts about SOL.

Until FOMO (fear of missing out) replaces FUD (fear, uncertainty, and doubt), $200 SOL will be within reach.

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