Coin Flow Analysis

Definition ∞ Coin Flow Analysis involves tracking the movement of specific cryptocurrencies across various addresses, exchanges, and smart contracts on a blockchain. This analytical method provides insights into market sentiment, large-holder activity, and potential accumulation or distribution patterns. It helps identify significant transaction volumes and the behavior of distinct participant groups. This analysis is a tool for understanding on-chain economic activity and predicting market shifts.
Context ∞ Coin flow analysis is a standard practice for blockchain researchers, market analysts, and regulatory compliance teams. It offers transparency into the otherwise pseudonymous nature of blockchain transactions, helping to detect illicit activities or market manipulation. Advancements in analytical tools are continually improving the precision and depth of insights derived from coin flow patterns.