As a qualified cryptocurrency investor, in addition to being familiar with the market data, you should also have some basic blockchain data knowledge in order to have a more mature judgment on the project.
In the previous article, we introduced active addresses and newly added addresses. The on-chain indicators introduced to you today are the number of transactions and transaction amount, which are still the standard indicators for major blockchain browsers and data websites. . Still the same, this article will explain one by one from the algorithm and application fields.
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Definition of the number of transactions
The number of transactions is composed of the transaction volume that occurs every day. In general, a transaction represents a transfer on the chain.
In addition, the number of transactions can continue to be split into finer indicators. According to different types of transactions, we can get some more targeted indicators, such as the number of recharges, withdrawals, and large transfers on exchanges.
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Transaction Amount Definition
The transaction amount is usually in currency, which refers to the quantity included in each transfer transaction (such as 1BTC, 10ETH), and is denominated in token or coin.
There is also an indicator called the transaction amount (USD), which is in USD and indicates the value of the dollar corresponding to the transaction amount, that is, the transaction amount is multiplied by the dollar price of the corresponding cryptocurrency.
Why depends on the number of transactions and transaction amount
Changes in the number and amount of transactions can reflect the overall popularity of transactions on the chain, and it is also a basic indicator that reflects the health of a project. The first application of the blockchain started from cryptocurrency, which has more attributes than Ethereum. For cryptocurrency or payment projects, if transactions are not active, the efficiency of transactions on the chain cannot be guaranteed. The future of the project is relatively pessimistic.
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Daily Transaction Amount (USD)—BTC
The price of BTC fluctuates greatly, but the fluctuation of the data on the chain is relatively stable. According to some media estimates, the ratio of BTC on-site and off-site transactions is about 20/80. The popularity of off-site transactions can be seen from the number of BTC transactions and the transaction popularity of the Lightning Network. During the period when the price of BTC was halved in 2018, the turnover rate of the exchange dropped significantly, but the amount and quantity of transfers on the chain did not decrease much. people are still there.
Recently, the market has improved, and the indicators on the chain have also started a growth trend. Does this indicate that the bull market is really coming? Can this round of market continue to be strong? We will continue to explore the above issues in the future.
