On-Chain Indicators

Definition ∞ On-chain indicators are metrics derived directly from data recorded on a blockchain. These indicators provide insights into network activity, transaction patterns, and user behavior. Examples include transaction volume, active addresses, miner revenue, and the flow of assets between wallets. Analyzing these on-chain signals offers a transparent view into the fundamental health and activity of a blockchain network.
Context ∞ The utility and interpretation of on-chain indicators are a constant topic of discussion among cryptocurrency analysts and traders seeking to gauge market sentiment and network fundamentals. Recent advancements in data analytics tools and visualization techniques are making these metrics more accessible and actionable. The correlation between specific on-chain patterns and subsequent price movements remains a subject of active research and strategic application in investment decision-making.