On Chain Market Structure

Definition ∞ On-chain market structure refers to the observable patterns and distributions of digital assets and transactional activity directly recorded on a blockchain. This includes metrics such as coin distribution among addresses, wallet activity, and the flow of funds between different entities. It provides a transparent view of real-time supply and demand dynamics, holder behavior, and network utilization. This data offers a granular understanding of market forces.
Context ∞ News and analysis often leverage on-chain market structure data to provide a deeper understanding of cryptocurrency price movements beyond traditional exchange data. Shifts in whale holdings, long-term holder accumulation, or significant fund movements can indicate underlying market sentiment and potential future price action. Understanding these on-chain patterns is critical for informed decision-making in the digital asset space.