We are thrilled to announce the launch of a pioneering suite of 28 new on-chain metrics, now available on Glassnode for both Bitcoin and Ethereum. This latest addition to our platform solidifies Glassnode’s position as a leader in on-chain analytics by adding an unprecedented depth to critical metrics, such as SOPR, MVRV, Realized Profit, and Realized Cap. By incorporating detailed breakdowns based on the age of holdings and wallet size distributions, we significantly enrich our understanding of capital flows, asset fundamentals, and market sentiment.
To find these new metrics, institutional customers can log in to Glassnode Studio, go to Charts, and from the metrics catalogue on the left select Breakdowns. If you would like to learn more about the specific metrics that are being released and how you can apply them in your analysis and trading strategies, we invite you to take a look at the detailed breakdown in this Glassnode Acadamy article.
Unrivaled Perspective on Cohort Activity
This new suite of metrics is designed to address complex questions about market dynamics, enhancing our users' ability to make informed decisions based on detailed cohort analysis. By focusing on individual wallet addresses rather than traditional UTXO-based methods, we now provide a more intuitive view of asset flows and holdings and introduce additional dimensions for data interpretation.
These dimensions include metrics segmented by age and wallet size, offering users the means to explore complex questions such as:
- How do investor actions impact asset valuations, especially when analyzed through our newly enhanced, granular holding periods that range from days to weeks to months?
- Do larger wallets hold a greater proportion of network wealth compared to smaller ones, suggesting centralised markets driven by relatively few influential investors?
- Are new investors nursing more unrealized losses than the older ones, suggesting a potential for short-term volatility yet highlighting an underlying strength in the market?
Equipped with such a deep understanding of the crypto market, Glassnode users will now be in a better position to make accurate investment and trading decisions across a broader range of time frames and assets.
Benefits of Address-Based Approach
Understanding the full scope of digital asset dynamics requires data that is both comprehensive and easily comparable across various cryptocurrencies. That’s why the new metrics use an address-based methodology that facilitates consistent comparisons across different blockchain architectures - from Ethereum’s account model to Bitcoin’s UTXO system. This highly adaptable and scalable approach paves the way for integrating thousands more assets into our platform in future. Essentially, this new suite of metrics is just the first step and the technology behind it will help us to continue providing our community with all the tools they need to navigate an increasingly diverse digital asset landscape.
Supercharging Ethereum Analytics
As Ethereum's ecosystem becomes more complex and Decentralized Finance (DeFi) more popular, we are keenly aware of the growing need our institutional clients have for more precise analytical tools. With this new suite of metrics, we are extending the insights that have turned Glassnode into the leader in on-chain analytics to the Ethereum blockchain. In doing so, we aim to aid institutions in broadening their scope of investment, diversifying their portfolios, and capitalizing on the trends in assets beyond Bitcoin.
Tailored for Traders and Investors
One of the biggest, tangible benefits of this metric suite lies in highly granular and intuitive insights into asset flows and wallet activity. These insights can be translated into potential buy and sell signals and help better understand overall market cycles.
This, in turn, can be beneficial for momentum and long-only traders as it aids in strategizing entries and exits, managing portfolios, and minimizing risks associated with market volatility. For example, here are some ideas for the potential use cases of the new metrics:
- Early Identification of Market Trends: By analyzing age-based cohorts of asset holdings, traders can detect early signs of market movements. For instance, observing shifts in the holdings of short-term versus long-term holders can indicate emerging trends before they become mainstream.
- Risk Assessment: Entities can evaluate the composition of wealth held on the network by examining the distribution of holdings by age and wallet size. This provides insight into which market participants hold substantial portions of the network wealth, offering critical data for strategic decision-making regarding entry and exit points.
- Profit and Loss Signals: Our metrics allow for detailed tracking of realized profit and loss by age and wallet size, providing clear signals for potential portfolio adjustments.
- Volume Analysis: Traders can refine their strategies by analyzing spent volumes in profit or loss, segmented by holder age or wallet size, to optimize their trading moves based on market liquidity and sell-off risks.
Maximize Insights with Our Dedicated Dashboards
To ensure our users make the most of our new metrics, we've developed dedicated dashboards tailored to distinct investment timelines. These tools provide specific, actionable insights tailored to different types of market participants:
- Short-Term Holder Dashboard: Focuses on the spending behaviour and market sentiment of Short-Term Holders, with detailed Breakdown metrics for subsets ranging from 1 day to 6 months. This dashboard reveals early market inflection points and trends, making it invaluable for those looking to respond quickly to market movements. This dashboard is available for both Bitcoin and Ethereum blockchains.
- Long-Term Holder Dashboard: Analyzes the deeper, more sustained market trends affecting Long-Term Holders, showcasing metrics such as Realized Cap and SOPR, segmented by age groups from 6 months to several years. This dashboard is designed for users who manage long-term investments and are interested in understanding broader market cycles. You can access these insights for both Bitcoin and Ethereum.
Each dashboard is designed to enhance strategic decision-making, with specific insights tailored to key blockchain platforms, thus supporting a range of trading and investment strategies. In the future, we are planning to release more dashboards showcasing specific applications of the new metrics suite for our key customer segments such as long-only, long/short, or momentum traders.
Explore, Analyze, Succeed
These new metrics are already available on Glassnode Studio and via API for institutional users, empowering both new and existing users to navigate the crypto markets with more confidence. You can access the API documentation here. If you’d like to get access to our most cutting-edge metrics, please contact our institutional team.
