Three cryptocurrencies can outperform Bitcoin according to analytics firm Santiment.
Thus, for the company several cryptocurrency market metrics indicate that Ethereum (ETH), Basic Attention Token (BAT), and Maker (MKR) seem more optimistic in the short term than Bitcoin (BTC).
Santiment analyzed the three-day averages of each crypto active digit in three metrics.
The first, DAA (Daily Active Addresses) vs. Price Divergence.
This metric compares the price action of an asset with the number of unique addresses that interact with that specific currency daily.
The metric sees the price action that exceeds the DAA as a bearish signal and vice versa.
The second, the Network Value for Transactions (NVT) relationship.
This metric compares the transferred value on a specific network (transaction volume /token circulation) with the net market value.
If the transaction volume is low relative to the market value, an asset is considered overvalued and vice versa.
The third metric, Volume of Feelings, measures the sentiment of market participants on Twitter.
Better than Bitcoin
Thus, Santiment evaluated each asset using a simplified classification system: 0-10, with 0 representing the lowest and 10 the highest.
A 5 implies a lateral consolidation forecast.
Bitcoin scored a 3 on the DAA vs. Price Divergence metric, a 2 on NVT, and a 6.5 on Sentiment Volume, reaching an average rating of 3.8, or "slightly bearish."
Ethereum obtained a 5 in the DAA vs. Price divergence, a 5.5 in the NVT, and a 6 in the Volume of Feelings, for an average rating of 5.5 (neutral).
The BAT Token scored 8.5 in the DAA vs. Price Divergence, a 9.5 in the NVT, and a 6 in the Sentiment Volume, with an average rating of 8.0 (high).
And Maker got a 9 on the DAA vs. Price divergence, a 10 on NVT, and a 5.5 on Sentiment Volume for an average rating of 8.2 (high).
However, Santiment warns that none of these scores are indicative of the company's long-term outlook for each asset.
"With each weekly volume we release from the Bold Predictions series, we examine the most recent three-day averages (or percentage changes) of each metric we're covering. As a reminder, these signals are for intra-day traders to evaluate local highs and lows based on historically solid key indicators…"
Thus, according to the company, the valuations do not indicate however in which asset investors should invest.
"Regardless of whether we call a project high or low for the next week or two, remember that this has no relevance to what we think of the long-term viability of the asset as an investment," he concluded.