Altcoins

If you’re worried about FUD driving LooksRare’s trajectory, watch out for…

LooksRare and OpenSea’s rivalry is a widely known one. In reality, as soon as upon a time, analysts had been mentioning what truly helped tilt the scales in LookRare’s steadiness. The introduction of the LOOKS token, they mentioned.

Nonetheless, slightly greater than a month after the launch of the NFT market, LOOKS isn’t trying too wholesome.

A glance into the previous

At press time, LOOKS was trading at $1.68, having risen by 6.70% within the final 24 hours. When the image is zoomed out, nonetheless, one can see that the image is sobering. Days after its launch, LOOKS hit an all-time excessive of near $7. Since then, the token has been on a nosedive.

What’s extra, optimistic weighted sentiment has been a very good indicator of a drop in value for this asset. Since mid-February, the weighted sentiment has largely stayed effectively underneath zero.

Supply: Sanbase

Santiment’s own analysis of LOOKS famous that there’s a whole lot of FUD surrounding the founding staff’s WETH positions and the way these are being exited.

On the query of lively addresses, we will see that from highs of greater than 7,500 lively addresses in early January, the quantity has now dropped to beneath 100.

This can be a signal of stagnation and additional strengthens claims of wash-trading levelled in opposition to the NFT market.

Supply: Sanbase

One more issue to notice right here is the provision on exchanges as this reveals what plans traders – and whales – may need for LOOKS.

Curiously, the alternate provide of LOOKS on exchanges has been steadily rising by the hundreds of thousands ever since its launch. There was a pointy drop on 14 February, one thing that prompt that traders had been shopping for what they thought was the underside.

Since then, nonetheless, the alternate provide has been altering sharply however staying between 9 and 11.2 million.

Supply: Sanbase

What’s additionally value noting is that the token’s prime holder – “LooksRare: Token Distributor” – had about 58.87% of the whole provide at press time. This was value about $380,270,680.85.

OpenSea slows to a trickle

Of late, it’s not simply been LOOKS that has been going through hassle. OpenSea ended January 2022 with record-breaking month-to-month volumes. However on 20 February, OpenSea recorded its lowest daily volume since Christmas 2021.

One doable cause for this may very well be the rumors of an OpenSea exploit, one thing that led to widespread panic amongst NFT merchants.

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