Disclaimer: Your capital is at risk. This is not investment advice.
On-chain analysis provides us with a window into the economic activity of a blockchain. While this window is relatively wide, it is also rather murky. The data that we extract from a blockchain requires cleaning, identifying and collating before any of the fun stuff (the analysis) can begin.
Once we have a solid data set to work with, we can analyse it to observe behavioural patterns, identify economic activity as well as highlight spam or activity that is considered to be fake.
Here are a few examples of the type of data that we have access to and why it is relevant to the valuation of a network:
|Relevance to Network Value
|Daily Active Users (DAU)
|Number of active bitcoin addresses on a given day.
|Can be used to model the price of a digital currency based on the Network Effect.
|Adjusted TX Volume transacted over the bitcoin network.
|Observe the network spend to network value ratio and identify deviation from the mean.
|Value of transfers from the wallet bitcoin was mined from.
|Enables us to observe the rate that new bitcoin are introduced into circulation.
Over the coming weeks and months we will be taking a deep-dive into our on-chain data we track on the ByteTree Terminal to highlight key patterns and anomalies. Our mission is to demonstrate the fundamental value of public blockchains to enthusiasts, skeptics and most importantly the investors looking for some tangible measures of crypto-asset values. Our real time data enables smarter investing, trading, tracking and forecasting.