An Entity-Adjusted Metric refines on-chain data by grouping multiple blockchain addresses under a single identified entity, such as an exchange or a large investor. This methodology provides a more accurate representation of actual economic activity by distinguishing between internal transfers and genuine external transactions. It helps overcome the challenge of pseudonymity inherent in blockchain data. Such adjustments offer deeper insight into market structure and participant behavior.
Context
The utility of Entity-Adjusted Metrics is frequently highlighted in sophisticated on-chain analysis, offering a clearer picture of market movements beyond raw transaction counts. Researchers often employ these metrics to identify significant accumulation or distribution phases by major market participants, which can be obscured by unadjusted data. This analytical approach is crucial for discerning genuine trends and avoiding misinterpretations of blockchain activity.
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