Why Are Traders Super Bearish On Chainlink, Solana, and Bitcoin?

Dalmas Ngetich

8 months ago

2 mins read

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As the crypto market struggles to shake off the weakness of last week, the latest sentiment data from Santiment shows that token holders and traders are bearish on some of the top altcoins. According to their recent analysis, token holders are bearish the most on Chainlink–a middleware solution that powers DeFi and NFTs, Ethereum, Solana, and Bitcoin.

Out of their assessment, it is interesting to note that these coins on focus are those in the top 10, except for Chainlink that is still perched outside the top 20. While Chainlink tops the list, others, mainly Ethereum, Solana, and Bitcoin, are in the top 5.

Chainlink, Solana, Ethereum, and Bitcoin holders are bearish | Source: @santimentfeed via X

Chainlink Struggling Despite CCIP Success, Ethereum Disappoints

Although Santiment didn’t provide a reason to explain why the community is bearish on these tokens, there are fundamental factors that prop up this outlook. Despite being a leader in DeFi through their Oracle solution and Cross-Chain Interoperability Protocol (CCIP), Chainlink still struggles for momentum.

LINK, the native token, rose to as high as $22, which is below the 2021 highs and is currently down 53% from the 2024 highs. Considering its role in DeFi and NFTs, holders expected the token to float higher, outperforming the market. This was especially so after the launch of the CCIP solution, which has found adoption among some of the top DeFi and TradFi platforms.

Chainlink price moving sideways on the daily chart | Source: LINKUSDT on Binance, TradingView

Pessimism about Ethereum’s outlook could also stem from disappointment following the approval of the first batch of spot Ethereum ETFs. Unlike Bitcoin, whose prices ripped higher, breaking above $70,000 to as high as $74,000, spot Ethereum ETFs have not been as successful.

As of October 10, Soso Value shows that all issuers in the United States managed just over $6.6 billion. Even so, there are massive outflows from Grayscale’s ETHE, heaping massive pressure on ETH prices. The second most valuable coin is still trading below $2,800 and is moving sideways in a possible distribution.

Spot Ethereum ETF assets under management | source: Soso Value

Solana Suffers As Meme Coin Momentum Fades, Impact Of FTX Asset Distribution

Solana, on the other hand, is also under pressure. The success of Pump.fun, which saw hundreds of thousands of meme coins deployed, supported prices. However, as Tron gains market share, the momentum is fading, negatively impacting prices.

Moreover, in the coming few months, FTX trustees will distribute nearly $16 billion of assets to victims. Even though some might continue to HODL, others will choose to liquidate–a negative for the coin.

Feature image from DALLE, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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