New Behavioral Insights Into Your Crypto Asset via On-Chain Analytics on CMC
Hello loyal users of CoinMarketCap, we just launched a new set of data to
help you gain more insights about your crypto assets! Our
partner IntoTheBlock excels at extracting intelligence from the
blockchain data of specific crypto assets. They generate signals that
describe patterns such as on-chain analysis and address
profitability and ownership segmentation, among other things. Where can you find
this data on CoinMarketCap? CoinMarketCap has incorporated
IntoTheBlock’s on-chain signals in a dedicated “On-Chain Analysis” tab
for over 700 crypto asset pages including Bitcoin, Ethereum and
XRP, to name a few. How can these on-chain insights help me with my
crypto investments? Under the “On-Chain Analysis” tab on each
crypto asset page, you will see a range of indicators, such as how
many investors are making or losing money. You’ll also be able to
view the concentration of a cryptocurrency held by whales, and
whether holders of a particular crypto asset are active or
passive traders. For starters, below are three ways a crypto retail
investor can use these indicators. (Thanks to our partner
IntoTheBlock for providing the detailed descriptions!) Indicator
1: “Holders Making Money at Current Price“ What it is:
IntoTheBlock takes every on-chain address (referred to as a “holder”) that
currently has a balance of the asset, and calculates the average price at
which its assets were bought. Buyers who bought crypto at a price lower
than the current price are “In the Money.” Tho holders who bought
at a price higher than the current price are known as “Out of the Money.”
Investors can use this indicator to answer questions such as:
Indicator 2: “In the Money“ What is it? This signal calculates the
net change of “In the Money” addresses (refer to the above
indicator “Holders Making Money at Current Price”). A
bullish signal is given when “In the Money” addresses
increase, and a bearish signal is given when it decreases.
Indicator 1: “Transactions Greater Than $100K“ This
indicator is measured by the number of on-chain
transactions in excess of $100,000 every day. It shows the trend in the
number of these “large” transactions for the past seven days and
their overall dollar value. You can review the trend of large
transactions for a particular asset, and hypothesize how the
investor base is composed. If the number is increasing, there could be
more institutional players such as OTC desks or whales holding a
particular asset. Indicator 2: “Concentration” (i.e. activity
growth among existing large holders) This signal is based
on the indicator, “Concentration by Large Holders.” It
gives us a bullish reading when these large holders accumulate
more tokens. A bearish reading shows when large holders sell. When large
players accumulate tokens and increase the concentration of an asset,
this could indicate that “insiders” are bullish. The opposite is true for a
decrease in concentration. Indicator 3: “Large
Transactions” This signal is based on the indicator “Transactions
Greater than $100K.” When large transactions over the short run are greater than
the long-term average, we get a bullish signal. It reflects the increase in
activity by large players. When the short-term is lower than the long-term
average, the indicator turns bearish. Indicator 1: “Concentration
by Large Holders Holders” ITB categorizes holders by the
level of concentration and holding time. This metric provides the
percentage of circulating supply (“CS”) owned by “whales” (holding 1%+ of
the CS), and large investors (holding 0.1-1% of the CS.) You can use this
metric to determine if an asset is overly-concentrated or if large holders can
influence price significantly. If the asset is distributed evenly, there is
little risk of larger holders impacting markets significantly. Indicator
2: “Composition by Time Held” (i.e. if current investors are in for the
long run or short-term) This indicator segments the investors according
to their holding period. It allows us to understand if investors are passive (1+
year before selling), very active (>1 month before selling), or somewhere in
between. This allows an investor to answer questions such as: Price
Correlation With Bitcoin: This metric tests the asset’s price
correlation with Bitcoin over 30 days. The correlation
indicator ranges from -1 to 1. -1 to 0 indicates a negative correlation
as prices move in opposite directions. 0 to 1 indicates a positive correlation
as prices move in a similar direction. Transaction Demographics: This
indicator tracks if an on-chain transaction happened during Asian (East)
trading time, or during European/American (West) trading times. The indicator
provides a view of this split for the last 14 days. It is great for
understanding the difference in geographic interest in the token. Net Network
Growth: This indicator measures an asset’s underlying net address growth.
It’s calculated by taking the total number of new addresses created for a
particular asset, and subtracting from it the number of addresses that have gone
to zero for that asset. It is great for estimating the growth in the utility of
the token. For more explanation on any of the indicators above, feel free to
check out IntoTheBlock’s video tutorials. Curious about the other types of
crypto data that you can find on coinmarketcap.com? See our other insights,
here!
Hello loyal users of CoinMarketCap, we just launched a new set of data to
help you gain more insights about your crypto assets! Our
partner IntoTheBlock excels at extracting intelligence from the
blockchain data of specific crypto assets. They generate signals that
describe patterns such as on-chain analysis and address
profitability and ownership segmentation, among other things. Where can you find
this data on CoinMarketCap? CoinMarketCap has incorporated
IntoTheBlock’s on-chain signals in a dedicated “On-Chain Analysis” tab
for over 700 crypto asset pages including Bitcoin, Ethereum and
XRP, to name a few. How can these on-chain insights help me with my
crypto investments? Under the “On-Chain Analysis” tab on each
crypto asset page, you will see a range of indicators, such as how
many investors are making or losing money. You’ll also be able to
view the concentration of a cryptocurrency held by whales, and
whether holders of a particular crypto asset are active or
passive traders. For starters, below are three ways a crypto retail
investor can use these indicators. (Thanks to our partner
IntoTheBlock for providing the detailed descriptions!) Indicator
1: “Holders Making Money at Current Price“ What it is:
IntoTheBlock takes every on-chain address (referred to as a “holder”) that
currently has a balance of the asset, and calculates the average price at
which its assets were bought. Buyers who bought crypto at a price lower
than the current price are “In the Money.” Tho holders who bought
at a price higher than the current price are known as “Out of the Money.”
Investors can use this indicator to answer questions such as:
Indicator 2: “In the Money“ What is it? This signal calculates the
net change of “In the Money” addresses (refer to the above
indicator “Holders Making Money at Current Price”). A
bullish signal is given when “In the Money” addresses
increase, and a bearish signal is given when it decreases.
Indicator 1: “Transactions Greater Than $100K“ This
indicator is measured by the number of on-chain
transactions in excess of $100,000 every day. It shows the trend in the
number of these “large” transactions for the past seven days and
their overall dollar value. You can review the trend of large
transactions for a particular asset, and hypothesize how the
investor base is composed. If the number is increasing, there could be
more institutional players such as OTC desks or whales holding a
particular asset. Indicator 2: “Concentration” (i.e. activity
growth among existing large holders) This signal is based
on the indicator, “Concentration by Large Holders.” It
gives us a bullish reading when these large holders accumulate
more tokens. A bearish reading shows when large holders sell. When large
players accumulate tokens and increase the concentration of an asset,
this could indicate that “insiders” are bullish. The opposite is true for a
decrease in concentration. Indicator 3: “Large
Transactions” This signal is based on the indicator “Transactions
Greater than $100K.” When large transactions over the short run are greater than
the long-term average, we get a bullish signal. It reflects the increase in
activity by large players. When the short-term is lower than the long-term
average, the indicator turns bearish. Indicator 1: “Concentration
by Large Holders Holders” ITB categorizes holders by the
level of concentration and holding time. This metric provides the
percentage of circulating supply (“CS”) owned by “whales” (holding 1%+ of
the CS), and large investors (holding 0.1-1% of the CS.) You can use this
metric to determine if an asset is overly-concentrated or if large holders can
influence price significantly. If the asset is distributed evenly, there is
little risk of larger holders impacting markets significantly. Indicator
2: “Composition by Time Held” (i.e. if current investors are in for the
long run or short-term) This indicator segments the investors according
to their holding period. It allows us to understand if investors are passive (1+
year before selling), very active (>1 month before selling), or somewhere in
between. This allows an investor to answer questions such as: Price
Correlation With Bitcoin: This metric tests the asset’s price
correlation with Bitcoin over 30 days. The correlation
indicator ranges from -1 to 1. -1 to 0 indicates a negative correlation
as prices move in opposite directions. 0 to 1 indicates a positive correlation
as prices move in a similar direction. Transaction Demographics: This
indicator tracks if an on-chain transaction happened during Asian (East)
trading time, or during European/American (West) trading times. The indicator
provides a view of this split for the last 14 days. It is great for
understanding the difference in geographic interest in the token. Net Network
Growth: This indicator measures an asset’s underlying net address growth.
It’s calculated by taking the total number of new addresses created for a
particular asset, and subtracting from it the number of addresses that have gone
to zero for that asset. It is great for estimating the growth in the utility of
the token. For more explanation on any of the indicators above, feel free to
check out IntoTheBlock’s video tutorials. Curious about the other types of
crypto data that you can find on coinmarketcap.com? See our other insights,
here!
