On Chain Insight is a concept used to analyze blockchain data to gain insights into the cryptocurrency market. It involves using on-chain data such as transactions, addresses, and holders to understand market behavior and make better investment decisions.
Some examples of on-chain indicators used in On Chain Insight are:
- *In/Out of the Money*: This indicator shows the profit and loss profile of holders. By looking at this data, we can understand whether the holder is in a profit or loss position.
- *NVT Ratio*: This indicator compares the network value with the transaction value on the network. Thus, we can determine whether a cryptocurrency asset is overvalued or undervalued.
- *Active Addresses & New Addresses*: This indicator shows the number of active and new addresses on the network. By looking at this data, we can understand whether the project is growing or not.
By using On Chain Insight, investors can gain better insights into the cryptocurrency market and make better investment decisions. Several platforms such as Glassnode and IntoTheBlock provide on-chain data and analytical tools to help investors in making decisions.
Source: MetaAi