What sort of crypto analytics platform would we be if we didn’t analyze our own network?
In our running series of project network overviews, we decided it was about time we stopped looking outward, and practiced some self-reflection instead.
So today we face the mirror and attempt to analyze the Santiment network, exploring distinct patterns, on-chain trends and other noteworthy network events.
But before all that, we must first begin by addressing the principal question of any decent self-analysis: who/what am I, really?
What is Santiment?
In simplest terms, Santiment is a platform that provides on-chain, social and other bespoke metrics for crypto. The sea of data that we facilitate can be used for day trading, long-term investing or just figuring out how crypto markets works.
SAN is the project’s utility token. It is currently used to access our advanced Dashboards and API (via staking), while additional use cases for SAN are in development. As for what the future holds, Santiment’s roadmap outlines our next year or so in no uncertain terms.
For any other questions, you can ask the team directly on Santiment’s discord, or just leave a comment on this post: I’ve heard whoever manages their company blog is super friendly and quick to reply.
With that out of the way, let’s jump right into the data:
SAN Network Overview
Let’s begin with a fundamental overview of the SAN network:
- Lifetime total of SAN transactions: 24740
- Lifetime total of addresses that ever touched SAN: 8205
- # of current SAN holders: 2003
If we further break down those 8205 addresses by the # of completed transactions involving SAN, we get the following spread:
- 1 trx – 15.3% addresses
- 2 trx – 48% addresses
- 3 trx – 9.5% addresses
- 3-5 trx – 14.5% addresses
- 5-10 trx – 9.1% addresses
- 11-100 trx – 2.9% addresses
- >100 trx 0.3% addresses
Why so many addresses with precisely 2 SAN-related transactions, you may ask? The most likely explanation is that the majority of these transfers tie back to exchanges.
Bitfinex is the perfect example. Most crypto exchanges utilize deposit addresses – if you want to send a token to the exchange’s main wallet, you must first move it to a temporary address. The peculiar spike in the # of addresses with only 2 transactions could be explained by such deposits – people sell their SANs via deposits addresses, which are then rendered obsolete.
The most active address by a fairly wide margin is 0x1151314c646ce4e0efd76d1af4760ae66a9fe30f, which is the Bitfinex wallet. It accounts for 7288 SAN transactions, or 30% of all transfers!
In comparison, the most active non-exchange address boasts a total of 904 transfers.
The mean value across all SAN transactions is 15427 SAN, while the median stands at 1031 SAN.
Exploring the connection between mean and median transfer values can often yield valuable insights for high-usage coins. However, as SAN still services relatively few daily transactions, the current mean-median dynamic is fairly irrelevant.
The biggest transaction in the history of our network (45,488,374 SAN) took place on May 15, 2018. It was the transfer from the Bitfinex cold storage to its hot wallet that, at the time, accounted for almost 73% of the SAN market cap.
In traditional economics, the Herfindahl-Hirschman index (HHI) is generally used to measure market concentration. In crypto, it could be utilized as an indicator of token concentration across holders.
HHI typically ranges from 1 (a monopoly) to 0 (an infinite number of market participants with same shares).
As you can see in the below graph, SAN’s HHI began growing right before the bullrun, meaning some addresses (exchanges or whales) were accumulating tokens. SAN’s price mushroomed at around the same time.
Both inflations were clearly prompted by the same market forces, the source of which we can only speculate on at this point.
Interestingly enough, HHI plummeted just a few months earlier – October 23rd 2017, to be precise. There are no spikes in the number of transactions on the day, but there was a significant jump in transaction volume recorded: 7x compared to previous week. Here’s what that looks like in our SANbase Dashboards:
One large transaction did occur on 23.10.2017, where almost $235,000 worth of SAN changed hands.
The below image shows the amount of ‘Santiment’ mentions over time on various crypto-related Telegram channels. Predictably, as with most projects, the Santiment chatter peaked at around the same time as its token price.
That said, more chit chat did not translate to an increase in trx number or trx volume. Put simply, those discussing Santiment on Telegram weren’t always the same people involved in the project’s on-chain activity.
Rather than social chatter, Santiment’s on-chain metrics seem to be more closely correlated with the token’s price action. It is little surprise, then, that the majority of SAN transactions still appear to be speculative in nature.
Attempting to visualize the entire SAN networks leaves us with a messy, yet highly insightful blotch:
The red strands signify exchange addresses and exchange-based transactions. All non-exchange addresses (and those used for exchange deposits) are painted blue, with off-exchange transactions represented in black.
Finally, the green dots on the SAN map illustrate all addresses involved in arbitrage.
A typical arbitrage scenario is fairly straightforward: somebody withdraws their SAN from exchange A to deposit directly to exchange B. He chooses not to use a personal wallet, as it just means additional fees. There’s a grand total of 977 arbitraging addresses in the SAN network. Of the lot, 861 were used for arbitrage only, with no personal deposits ever made.
As you can see, our Network graph is still somewhat dominated by exchange-related activities, which is to be expected at this stage of development. Just like any project, prior to developing a necessary infrastructure to support a utility token, speculation was SAN’s only viable use case.
This is no longer true. Today, SAN is used to gain access to our advanced dashboards, as payment for our recently-launched online challenges, and will be the cornerstone of our future content contribution network. Put simply, SAN’s non-speculative benefits are steadily on the rise, and with it the number of off-exchange network participants.
What are your thoughts on the Santiment network? Which project do you want us to cover next? Let us know in the comments!