Cryptocurrencies are often incredibly volatile and can see massive price swings in a short time. This makes them ripe for bear traps. A bear trap is a situation where traders wrongly think a coin is about to reverse a downtrend. These events often result in significant losses. This guide will discuss crypto bear traps, how to identify them, and the risks involved in these situations. Introducing Crypto Bear Traps A bear trap happens when a trader buys assets, expecting the…
The “On-Chain Analysis” field is growing in popularity in the financial world. Glassnode is one of the most popular companies offering on-chain analysis services.
What is Glassnode? How does it help customers understand the crypto market? We will answer all these questions in today’s review.
What Is Glassnode? A Look Into the Project’s Features
Observing on-chain indications, i.e., knowledge acquired from the blockchains themselves is what Glassnode does to produce intelligent data. The project began in 2018 in Germany and has had its head office in Switzerland since then.
You may use Glassnode to gather additional information that isn’t available from standard charts on CoinMarketCap or its rivals. Glassnode is compatible with either Proof of Stake (PoS) and Proof of Work (PoW) projects,
Understanding the Scope of On-Chain Analysis
The term “on-chain analysis” refers to the process of analyzing market sentiment using data from a blockchain ledger. In more detail, this process entails checking out the balances and transactions of digital wallets.
There are a plethora of new platforms and resources that make it possible for blockchain data to be accessible more easily. These tools help you track the movements of your digital currency and personal wallets.
On-chain data is only a supporting tool for anyone interested in analyzing the crypto market. In other words, it is up to you to give an interpretation of the data and invest accordingly.
The Glassnode Academy
Early adopters and newcomers may use the Glassnode Academy to learn about the latest developments in the cryptocurrency industry. The platform explains every on-chain metric, its roles, and use cases in detail.
Data such as profit and loss ratios and other indicators are readily available to users in this environment. They may then utilize these to conduct their analyses.
Furthermore, the Academy portion of the website has a lesson that explains how to utilize and interpret the various charts. The pricing information for each chart is accessible in the section titled “Pricing.”
Glassnode offers different charts for different subscription plans. These tools appear adequate for the ordinary investor by reading the customers’ reviews.
The Glassnode Studio
The database’s core is Glassnode Studio. In this area, all the project indicators are available to the general public.
Glassnode Studio provides access to metrics connected to each project. For example, there will be more than 30 additional metrics if the user selects the “address” option. You may want to use this feature to spot how the “whales” are investing in the market.
You may pick the asset to analyze from the drop-down box under the Charts section on the left. The statistic to examine will become available once you choose the asset to study.
Addresses, transactions, markets, indicators, and a slew of other concepts fall under this category. As a result, several charts can help you gather valuable information in each area.
Glassnode Insight Feature
The team mentions that you will find well-researched articles based on the blockchain data in the “insight” section. Many are highly specialized, making them inaccessible to those who are just beginning to learn about the crypto world. However, the “Academy” section has the material you need to develop a more profound knowledge of the blockchain economy.
If you think you cannot spend hours on Glassnode, the team designed a newsletter feature for you. The researchers update the newsletter weekly during the whole year.
An expert’s perspective is available in this section. However, the project does not limit itself to sharing opinions. You will find market research studies, products, and a section devoted just to the DeFi industry.
The Glassnode team has put together many professional and technical publications on the cryptocurrency industry for its users. The Glassnode website’s thoughts and insights on several subjects are available for everyone using this resource. The information is available in several languages, such as English, Spanish, Chinese, and many more.
About Glassnode’s Metrics
Because of its extensive collection of indicators, the founders think Glassnode is among the finest platforms in the crypto analytics industry. You have to progress up via the three layers of metrics to get additional information.
Mined blocks and fresh deposits are examples of the information you may get in the first tier.
You’ll see DeFi Total Value Locked (TVL) and open interest in futures on the second tier of the system. We might also include futures volume, exchange balances, coin years destroyed, and numerous other indicators.
There is also a third tier with dollar balances and various other metrics. These include:
- The supply that third-tier participants hold.
- Withdrawal addresses.
- Miner balances.
- Unspent miner supply.
- SOPR ratio.
We will have the chance to understand some of the most popular indicators of the platform in the section below.
Understanding the Project’s Main Indicators
Several market indicators are available for each project, allowing you to better grasp how a coin is performing.
For example, the MVRV measures the market value to the actual worth of a coin. When used with other indicators, it is a powerful tool for identifying market peaks and dips.
An overbought coin might be a sign of a possible market peak if its value is high, for example. However, if it is low, the coin may be in an oversold phase, hinting that the market could be nearing its bottom.
LTH/STH is the ratio of long-term holders to short-term owners of a coin. This measure tells us who is selling and whether or not there is an increase in the traders’ panic.
Glassnode refers to the “coin days destroyed” as another interesting indicator. This statistical instrument captures the activity of long-term investors’ coins. When whales are close to selling, this indicator might suggest a time of profit-taking for the market.
The “Spent Output Profit Ratio” (SOPR) illustrates the profit/loss ratio of coins that have passed from one address to another.
Comparing Different Crypto Projects on Glassnode
This platform supports many crypto assets and shares many metrics on each of them. Consequently, you may need to look at the “bigger picture” and compare the coins’ main features.
With Glassnode, you may overlay two separate metrics on top of one other to produce an overlaid chart.
Using charts to compare cryptocurrencies will help you swap them because your decision will be more informed.
Signing Up to Glassnode
If you wish to join Glassnode, there are simply a few easy actions to take:
- Create your account by clicking “Sign Up” in the upper right corner of the page.
- Give the website your first name, last name, e-mail address, and password.
- Read and accept the terms & conditions of the platform.
- You will receive an e-mail to confirm your data. In this case, all you need to do is click on the link you will see in the message.
Glassnode is a blockchain and cryptocurrency data intelligence platform. The company develops applications that offer fresh insights into the world of blockchains and digital currencies.
Glassnode aims to be one of the top cryptographic data analysis tools accessible. Almost all the information you’ll need to make rational trading decisions is available on the platform.
Everyone interested in learning about Glassnode can refer to its website and social media pages. The project’s “Insight” section provides research and information about Glassnode and its market views.