Notcoin: Rise in Demand Does Not Equal Price Rise

Notcoin has witnessed a noticeable surge in demand over the past week. However, its value has plunged by double digits during the same period.

The value of Telegram-linked cryptocurrency Notcoin (NOT) has witnessed a steep decline following the arrest of Telegram’s CEO on August 24. However, despite its falling price, demand for NOT has surged.

Key Takeaways:

NOT’s price has plunged by double digits over the past week due to the arrest of Telegram’s CEO.

The altcoin experienced a 13% increase in daily active addresses, indicating a rise in demand.

However, the uptick in active addresses could also be attributed to existing holders distributing tokens to new users to minimize losses.

Notcoin’s Value Drops by Double Digits

NOT’s price has undergone a significant decline, last trading at $0.0076, marking a drop of over 23%. This decline follows the arrest of Telegram’s CEO, Pavel Durov, on August 24.

After the news broke, the value of Telegram-linked assets, including NOT and TON Crystal, plummeted. NOT’s price, which had risen to $0.02 on August 23, began a sharp downtrend.

At its current price, NOT is trading at a low last seen in May, presenting an opportunity for traders looking to capitalize on the market downturn.

Demand for NOT Surges Despite Falling Price

Interestingly, the falling price of NOT has not deterred traders, and the altcoin has seen a surge in demand over the past week.

According to IntoTheBlock, the daily active addresses for NOT have surged by 13%, with an average of 10,000 addresses trading the token each day in the last seven days.

Moreover, new demand for NOT has also increased significantly, with a 46% rise in the daily count of new addresses trading the token observed during this period.

On average, around 5,000 new addresses traded NOT each day in the past week, indicating a continuous influx of traders.

Usually, a rising demand for a cryptocurrency leads to an increase in its price; however, in this case, NOT’s price has declined substantially despite the rising demand.

One explanation for this could be that existing holders are distributing their tokens to new users in an attempt to minimize losses on their investments. This would naturally lead to an increase in the number of active and new addresses.

As these early adopters or "wholes" cash out, the price of the token will continue to decrease.

This theory is further supported by the declining large holders’ netflow for the token, indicating that its whales have been steadily reducing their balances.

Over the past week, this netflow has dropped by over 90%, highlighting the gradual exit of major holders from the market. This serves as a bearish signal and may also prompt retail investors to sell their tokens.

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