On-chain data comes from a public ledger system that allows people to look into all transactions that are recorded on to it. Utilizing this transparency, various raw data containing information such as coins sent amount and time, wallet address, and fees that are being paid to a miner which show the details of the activities via transaction can be extracted from on-chain data.
We all know tools like glassnode and cryptoquant. Advanced traders use them daily to analyze the current market situation. Blockchain data precisely marked the peaks of previous bull runs. However, it is only in this boom that these tools are widely used. It can also lead to the manipulation and control of the market by whales. Nevertheless, the power of this data enables it to be used for huge profits in the marketplace. However, they are not clear to everyone.
Do you think that such data is also reliable for altcoins? What works for bitcoin may not necessarily work with smaller tokens. Also, fluctuations in parameters are then greater, which makes it difficult to draw conclusions. Could factors such as the number of wallets and token movements on whale wallets be indicative of future price movements?
Do you guys think can these types of indicators give you an advantage in trading?
Topic: Can on-chain data be useful for altcoins? (Read 47 times)
Jump to: