Incorporating On-Chain Analytics into your Digital Asset Investing Strategy | HackerNoon

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Incorporating On-Chain Analytics into your Digital Asset Investing Strategy | HackerNoon
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'Incorporating On-Chain Analytics into your Digital Asset Investing Strategy ' nfttokenizationanalysis digitalassetanalysis

, Defy Trends recently defined on-chain analytics in simple terms:

On-chain can also refer to the process of storing data or managing data on the blockchain, but the term is generally used to refer to. On-chain transactions provide an invaluable source of data for savvy crypto investors who can analyze trends and tendencies in the goldmine of data to be found on the blockchain. On-chain transaction data can tell you who is trading a cryptocurrency, how often it’s being traded, how much is being traded, and more.

Besides calculating the net worth of the network, market capitalization helps estimate the size of the market for a given token or coin. A larger and more active market indicates broader investor interest, meaning that the fluctuations in price are likely to be less volatile than a less frequently traded coin.HODL wave is a metric used by analysts to determine patterns of holding or selling a given cryptocurrency and understand how long individual users are holding their tokens.

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