The Crypto CPI Watch is a database or monitoring system used to track and analyze consumer price indices (CPIs) in cryptocurrency markets. It is similar to the traditional Consumer Price Index (CPI), which is used in economics to determine inflation rates by tracking the prices of a range of goods and services, but is specifically designed for the cryptocurrency world.
What is the Crypto CPI Watch rule?
It is an analytical tool or database that monitors:
Prices of major cryptocurrencies (Bitcoin, Ethereum, Solana).
• Fees associated with transactions on the blockchain.
• Network usage costs (Gas Fees in Ethereum).
• Subscription prices for digital services based on Web3.
• Decentralized market movement and supply and demand.
the goal:
• Measuring the inflation or deflation of the digital economy.
• Providing data to investors, analysts, and decision makers about the stability or volatility of the decentralized financial system.
• Monitor market trends and identify the economic impacts of new crypto projects.
Uses of the base:
• In the analysis of token economics.
• To draw up smart monetary policies within DAO (Decentralized Autonomous Organization) projects.
• In building digital financial indices based on real data.
Base components
1. Digital Basket
A set of items that are considered "goods and services" within the system include:
• Average transaction fees on major networks (BTC, ETH, BNB)
• Cost of implementing smart contracts
• Prices of major and minor cryptocurrencies
2. Dynamic analysis indicators
• Chart volatility index.
• Token Inflation: Monitors the increase or decrease in the total supply of a particular currency.
3. Data Sources (Oracles + APIs)
The database is based on live data sources via:
• Oracles like Chainlink to bring real-time market data.
• APIs from CoinGecko, Etherscan, Glassnod to feed the database.
Analysis methods
Time Series Analysis
Identify seasonal or emerging trends.
- Economic Modeling
ARIMA or VAR models are used to predict network inflation based on the behavior of fees and prices.
Benefit and practical applications
1. For investors
It helps them measure the quality of the network over the long term.
2. For decision makers in DAOs
They can adjust fee policies or currency issuance based on indicators.
3. For developers and researchers
Provides data to build applications that rely on it.
