• Long-term holders of SUSHI token have significantly reduced their holdings, causing the SUSHI protocol to experience a decline in growth.
• There has been an increase in the SUSHI 365-day dormant circulation, suggesting that long-term holders may be losing faith in a SUSHI revival.
• The Unique Active Wallets (UAW) metric has seen consistent growth and usage, but overall network growth has been minimal.

Overview of SushiSwap’s [SUSHI] Decline

Long-term holders of the token have significantly shredded their holdings. The SUSHI protocol has seen a decline in growth, thereby putting the network’s health at risk. Although associated with the DeFi movement, SushiSwap’s [SUSHI] recent escapades have reeked of adversity with the U.S. SEC knocking on its doors. However, the troubles of the project did not begin with the regulatory Subpoena it received lately. Instead, holders of the token have been considering and acting upon their exit strategy since the last year.

Dormancy Comes Alive

According to Santiment, the SUSHI 365-day dormant circulation had experienced several spikes amid the unfavorable market conditions of 2022 and since 2023 began. The metric describes the number of tokens that haven’t moved in one year being transferred on a particular day. Notably, the dormant circulation increase has been more visible, in large numbers since 20 February. A similar occurrence happened on 3 March, and most recently— on 22 March. This series of increases implies that long-term holders may have lost faith in a SUSHI revival. Hence, the resolve to exit their positions.

Is Support Back To Distrust?

Furthermore, Santiment data showed that the SUSHI spent coins age bands moved significantly on 23 March. The movement was one that could not be ignored, reaching as high as 10

Overview of Cardano

• Cardano, a decentralized Proof-of-Stake (PoS) blockchain, has been receiving consistent neglect by crypto investors.
• On-chain data reveals that social dominance and development activity have been low since February 26th.
• Whale activity has been increasing since January, although there is no confirmation that ADA’s current value is close to its bottom. Total Value Locked (TVL) has also increased significantly over the past 30 days.

Social Sentiment Rises

The lack of attention given to the network might be surprising though, especially as the ecosystem reacted positively to recent crises in the industry. Social dominance gauges the percentage of discussions around an asset among the top-100 per market capitalization and it hit 2.687% on 14 March, confirming that Cardano’s mentions across socials had become mainstream.

Whale Activity Increases

According to Santiment, Cardano transactions in the $100,000 to $1 million range have been hitting several highs since January. In fact, at the time of writing, a hundred ADA $100,000 transactions had taken place already on 15 March. These values describe a „buy the dip“ situation however there is no confirmation that ADA’s current value is close to its bottom yet.

Development Activity Stagnates

The project’s Development Activity metric did not measure very highly at press time and it fell slightly but remained around the zone it has occupied since March began implying that there has been no notable demand for upgrades on Cardano yet.

Total Value Locked Rises

Total Value Locked (TVL), which measures total value of all crypto-assets staked or locked up in a protocol saw an increase of 188.01% over last 30 days helping Cardano jump into top-20 chains per TVL list as well.

• Bitcoin’s dominance has hit it’s highest point since September 2022, despite a 6.21% price drop in the market.
• Altcoin prices have dropped significantly more than Bitcoin; Litecoin [LTC] 12.54% and Cardano [ADA] 10.37%.
• Futures perpetual funding rate indicates that most long positions were liquidated across exchanges.

Bitcoin Dominance Hits Highest Point Despite Price Drop

Bitcoin’s [BTC] price drop since the new month began might have been demoralising for investors. However, the king coin continues to exert supreme dominance in the market with a 6.21% decline at the time of writing, while fellow competitors like Litecoin [LTC] fell by 12.54% and Cardano [ADA] dropped by 10.37%. Santiment pointed out this trend on social media and noted that BTC’s higher social dominance historically has initiated market rebounding.

Positive Perpetual Funding Rate

Despite the initial hike, short-positioned traders did not renege on maintaining their position and gained significantly over longs due to the Futures perpetual funding rate according to Glassnode which indicates a positive rate meaning that most longs were liquidated across exchanges with a 0.05% rate at press time.

Santiment Analysis

The on-chain analytics platform Santiment affirmed that BTC has been comparatively outperforming a majority of the market’s altcoins but also pointed to its increasing social dominance which gauges the share of discussion referring to an asset and surged to its highest level since September 2022 according to them implying that BTC is getting hyped but with no guarantee of capitalizing on short-term bottoms as its dominance fell from 19.19% to 13.86 % at press time .

Is A Rebound On The Way?

The case for capitalizing on short-term bottoms may again be non-existent as mentioned above however ,the initial resistance to its historical March falls may now be in motion leading one to question whether or not there may be potential for a historical recoil on the way .

Conclusion
Despite Bitcoin’s recent price drop, it is still performing better relative to other altcoins in terms of social dominance which could potentially leadto a rebound in prices in historical fashion . However , there is still no guarantee that BTC will imitate its January and February performance as there are many factors such as lower dominance levels at play that could affect any potential rebounds going forward .

• The historical trend of Bitcoin (BTC) has been to decline in March, but this year could be different.
• An increase of 40% in the first 30 days of the year, and 6.71% in the last 14 days shows a positive technical outlook for BTC.
• On-chain data shows that holders of BTC who have not moved their coins for 10 years now outnumber those held on exchanges.

Bitcoin’s Historical Performance in March

Bitcoin [BTC] has had a „habit“ of performing poorly during the month of March over the years, making it the second-worst month excluding 2013. Miles Deutscher opined that if today’s monthly close holds true, then this would be two consecutive green months at the beginning of 2023. This raises questions regarding what to expect from March – will BTC go against its usual decline or follow suit?

Technical Outlook

The Exponential Moving Average (EMA) suggests that BTC could trend toward its performance ten years back. This is because the 20-day EMA (blue) was above the 50-day EMA (yellow). However, the Relative Strength Index (RSI) remained neutral at 50.98 – implying no strong bullish or bearish sentiment at press time.

Holders Who Have Not Moved Their Coins

On-chain analyst Will Clemente shared that 10-year dormant addresses were more than those held on exchanges at press time. This may be due to long-term holders choosing not to exit their positions during bear market seasons, while short-term speculators fail to see out such periods. Another on-chain analyst Willy Woo noted that 2.6 million BTC have not moved within this period and estimated it to grow to 3.7 million by 2030 due to events such as November 2022 FTX collapse being reaffirmed by Santiment data analysis firm.

What Does The Future Hold?

It is difficult to predict exactly how Bitcoin [BTC]’s price action will turn out and whether it will go against its usual March decline or follow suit and drop further down instead – only time will tell which direction it takes next! However, with a positive technical outlook and more coins being held by long term investors than those held on exchanges, there is potential for an uncharacteristically successful month ahead for Bitcoin [BTC].

Conclusion

March has traditionally posed difficult times for Bitcoin [BTC], but this year is looking promising due to a strong technical outlook and increased interest from long term holders versus those held on exchanges currently. It remains uncertain which way BTC’s price action will go however – only time can provide us with an answer!