Next Step in the Evolution of On-Chain Analysis: New, Granular Cohorts for Key On-Chain Metrics

Learn about our new suite of metrics and its benefits for your analysis of the digital asset market and applicability to your trading strategies.

We are thrilled to announce the launch of a pioneering suite of 28 new on-chain metrics, now available on Glassnode for both Bitcoin and Ethereum. This latest addition to our platform solidifies Glassnode’s position as a leader in on-chain analytics by adding an unprecedented depth to critical metrics, such as SOPR, MVRV, Realized Profit, and Realized Cap. By incorporating detailed breakdowns based on the age of holdings and wallet size distributions, users can significantly enrich their understanding of capital flows, asset fundamentals, and market sentiment.

To find these new metrics, institutional customers can log in to Glassnode Studio, go to Charts, and from the metrics catalogue on the left select Breakdowns. If you would like to learn more about the specific metrics that are being released and how you can apply them in your analysis, we invite you to have a look at the detailed overview in Glassnode Academy.

Unrivalled Perspective on Cohort Activity

This new suite of metrics is designed to address complex questions about market dynamics, enhancing our users’ ability to make informed decisions based on detailed cohort analysis. By focusing on individual wallet addresses rather than traditional UTXO-based methods, we now provide a more intuitive view of asset flows and holdings and introduce additional dimensions for data interpretation.

These dimensions include metrics segmented by age and wallet size, offering users the means to explore complex questions such as: 

• How do investor actions impact asset valuations, especially when analyzed through our newly enhanced, granular holding periods that range from days to weeks to months? Examples:
• Do larger wallets hold a greater proportion of network wealth compared to smaller ones, suggesting centralised markets driven by relatively few influential investors? Examples:
• Are new investors nursing more realized losses than the older ones, suggesting a potential for short-term volatility yet highlighting an underlying strength in the market? Examples:

Equipped with such a deep understanding of the crypto market, Glassnode users will now be in a better position to make accurate trading decisions across a broader range of time frames and assets.

Benefits of Address-Based Approach

Understanding the full scope of digital asset dynamics requires data that is both comprehensive and easily comparable across various cryptocurrencies. That’s why the new metrics use an address-based methodology that facilitates consistent comparisons across different blockchain architectures — from Ethereum’s account model to Bitcoin’s UTXO system. This highly adaptable and scalable approach paves the way for integrating thousands more assets into our platform in the future.

Supercharging Ethereum Analytics

As Ethereum’s ecosystem becomes more complex and Decentralized Finance (DeFi) more popular, we are keenly aware of the growing need our institutional clients have for more precise analytical tools. With this new suite of metrics, we are extending the insights that have turned Glassnode into the leader in on-chain analytics to the Ethereum blockchain. In doing so, we aim to aid institutions in broadening their scope of investment, diversifying their portfolios, and capitalizing on the trends in assets beyond Bitcoin.

Tailored for Traders

One of the biggest, tangible benefits of this metric suite lies in highly granular and intuitive insights into asset flows and wallet activity. These insights can be translated into potential buy and sell signals and help better understand overall market cycles.

This, in turn, can be beneficial for momentum and long-only traders as it aids in strategizing entries and exits, managing portfolios, and minimizing risks associated with market volatility. For example, here are some potential use cases of the new metrics:

• Early Identification of Market Trends: By analyzing age-based cohorts of asset holdings, traders can detect early signs of market movements. For instance, observing shifts in the holdings of short-term versus long-term holders can indicate emerging trends before they become mainstream.
• Risk Assessment: Entities can evaluate the composition of wealth held on the network by examining the distribution of holdings by age and wallet size. This provides insight into which market participants hold substantial portions of the network wealth, offering critical data for strategic decision-making regarding entry and exit points.
• Profit and Loss Signals: Our metrics allow for detailed tracking of realized profit and loss by age and wallet size, providing clear signals for potential portfolio adjustments. 
• Volume Analysis: Traders can refine their strategies by analyzing spent volumes in profit or loss, segmented by holder age or wallet size, to optimize their trading moves based on market liquidity and sell-off risks.

Maximize Insights with Our Dedicated Dashboards

To ensure our users make the most of our new metrics, we’ve developed dedicated dashboards tailored to distinct investment timelines. These tools provide specific, actionable insights tailored to different types of market participants:

• Short-Term Holder Dashboards: Focus on the spending behaviour and market sentiment of Short-Term Holders, with detailed subsets ranging from 1 day to 6 months. These dashboards reveal early market inflection points and trends, making them invaluable for those looking to respond quickly to market movements. Here you can find the appropriate Bitcoin Dashboard and Ethereum Dashboard.
• Long-Term Holder Dashboards: Analyze the deeper, more sustained market trends affecting Long-Term Holders, showcasing metrics such as Realized Cap and SOPR, segmented by age groups from 6 months to several years. These dashboards are designed for users who manage long-term investments and are interested in understanding broader market cycles. Here you can access the Bitcoin Dashboard and the Ethereum Dashboard.

In the future, we are planning to release more dashboards showcasing specific applications of the new metrics suite for our key customer segments such as long-only, long/short, or momentum traders.

Explore the full list of metrics and get access to our Enterprise Plan

A complete overview of new metrics, dashboards, and documentation is available here. If you are not an institutional client yet, but would like to get access to this new suite, please contact our institutional team.