A leading analytics firm is keeping a close watch on Trust Wallet Token (TWT) after the mid-cap altcoin skyrocketed 143% within seven days.
TWT is the native asset of Trust Wallet, a non-custodial app that allows users to have full control over their crypto assets.
According to Santiment, TWT started getting a lot of attention last week after the fall of centralized crypto exchange FTX, which left many traders scrambling to find safe protocols to keep their tokens.
While TWT has outperformed the broader crypto markets over the last few days, the insights firm says that on-chain signals are warning that a correction for the token is in sight.
Santiment highlights TWT’s on-chain transaction volume is “very high,” indicating that a “mid-term cooldown period” is within the realm of possibility.
Santiment also says TWT’s network realized profit is witnessing its largest spike of all time by a “wide margin.” According to the analytics firm, the on-chain metric suggests that TWT is overvalued and traders are locking in profits.
Although TWT is flashing signs of profit-taking, Santiment notes that new users are entering the network and accumulating the mid-cap altcoin.
“We can also see that mid and large-tier TWT addresses have been growing quite steadily in number, and certain tiers like the 10,000 to 100,000 [addresses] and one million to 10 million addresses, have really upped the amount of addresses in the past week.”
You can read the full report here.
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Featured Image: Shutterstock/George Toubalis
