Look at each trade from every possible angle
- Social metrics
- Development activity
Santiment metrics and indicators help you make better trading
decisions and validate – or reject – the ones you’re already making
The Daily Active Addresses (DAA) graph shows the number of unique network addresses involved in transactions on a certain date. Simply put, DAA indicates the daily level of interaction with a certain token, both speculative and otherwise. One potential use case for DAA is identifying tops. You can also use DAA as a long-term indicator of the project’s adoption over time.
Network Growth shows the number of new addresses being created on a particular network each day. At its core, this metric illustrates a project/token’s adoption over time, and can be used to identify when it’s gaining – or losing – traction.
Developer (or Github) activity aims to show a project’s investment in coding manpower over time. A developer’s time is a relatively expensive resource (especially in crypto), so high dev activity implies that the project is serious about its business proposition, it will likely ship new features in the future, and it’s less likely that the project is just an exit scam. Simply put, Dev Activity can be used to gauge a project’s commitment to creating a working product, and continuously polishing and upgrading its features.
This metric shows the aggregate amount of tokens across all transactions that happened on the network on a certain date. A spike in transaction volume either signals a large amount of tokens moving, or a large number of transactions occurring on a given day. While perhaps not as strong of a price indicator as some other metrics (like Daily Addresses or Exchange Flow Balance), Transaction Volume can still be used effectively for thorough mid-term analysis, or in tandem with other indicators. A spike in transaction volume can be indicative of a local top.
This metric shows the amount of tokens changing addresses on a certain date, multiplied by the number of blocks created on the blockchain since they last moved. Spikes in this metric signal that a large amount of tokens are moving after being idle for a certain period of time, which can be a notable event for various reasons (such as growth of significant selling pressure or “inside knowledge” which might precede an upcoming price dip).
This metric aims to eliminate several built-in deficiencies associated with Transaction Volume (such as “tampering” to simulate network activity and general “noise” as it tracks all coins across all transactions). Daily Token Circulation solves both these issues by tracking the number of unique active tokens that are being transacted each day. This also makes Token Circulation a better indicator of true economic activity on the network, by reducing the potential for technical noise and artificial inflation.
This metric shows the average number of times that a token changes wallets each day. Simply put, a higher token velocity means that a same token is used in transactions more often within a set time frame. Token Velocity can be used to explain various noteworthy events in the life of a project.
The Exchange Flow Balance metric shows the combined values of tokens moving in and out of exchange wallets over time. If the value is positive on a certain date, more of a particular token entered the exchanges than left, and vice versa. It’s not uncommon for large inflows of tokens to the exchange to precede significant price action.
This metric shows the share (or %) of the total token supply found in exchange wallets over time. Among other things, this metric may suggest the amount of sell pressure impacting a coin across exchanges. Generally, when a high % of a token’s total supply is located in exchange wallets, the sell pressure is elevated and vice versa.
Daily active deposits (DAD) shows the number of unique deposit addresses that have been active on a particular day. All coins that enter exchange wallets go through deposit addresses first, making deposits a strong proxy for the overall level of speculative interest in a token. One potential use case for DAD can be to spot a dump preparation. It can be a strong signal for elevated speculative interest in a coin, which can indicate a mounting sell pressure and an upcoming retraction.
The MVRV (Market Value – Realized Value) ratio is a method for estimating a crypto asset’s real, or ‘fair’ value. It is calculated by dividing the market cap (market value or MV) by realized cap (total realized value or RV), and aims to show whether an asset is overvalued or undervalued. It ultimately provides additional context to total market capitalization and gives us an idea of how both holders and speculators are interpreting the current market valuation, which in turn gives us a better idea of how they’re likely to react to market cap changes.
This metric shows the share or % of the observed coin’s mentions on crypto-related social media, compared to a wider pool of 50+ of the most talked-about projects online. A spike in relative social dominance indicates a sudden increase in chatter around a coin, which will often coincide with significant news, project announcements or extreme price action (both up or down).
Before you make your next trade on Bitfinex,
use Santiment metrics to check:
Answer these and other questions in 5-10 minutes of analyzing
Santiment charts, to double-check your trade ideas and make