On-Chain Signals are calculated based on blockchain indicators. Each signal uses single-variate models each with slightly different methods as these parameters were tested and iterated upon to assure consistency and accuracy. All on-chain signals are recalculated once a day and aim to project next day’s price action.
Net Network Growth
This signal measures the change in the total number of addresses for a particular crypto-asset. Specifically, it tracks the variation relative to the previous week’s total addresses, optimizing the thresholds considered bullish or bearish to each asset’s nature.
In the Money
Using In/Out of the Money indicator, we are able to estimate the volume of tokens that are in the money, or profiting for a particular crypto-asset at a given price level. This model follows the 7-day moving average in the total volume of supply in the money and compares it to the value from the previous day.
Concentration
The concentration signal measures daily changes in the positions of whales, addresses that hold over 1% of circulating supply, and investors, addresses that hold between 0.1% and 1% of supply. If whales and investors are adding to their positions it is generally bullish, though the specific thresholds vary by crypto-asset.
Large Transactions
Based on large transactions metric, this signal analyzes shifts in the number of transactions of over $100,000, and acts as a proxy to institutional investors’ and high net-worth individuals’ activity. The model is optimized by tracking the convergence/divergence between the 21-day exponential moving average (EMA) and the 30-day EMA for large transactions.
in the following ideas I will try to reveal the meaning of these signals for you
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