On-Chain Metric Analysis

Definition ∞ On-chain metric analysis involves the systematic examination of data points recorded directly on a blockchain to derive insights into a digital asset’s market dynamics and network health. These metrics include transaction counts, active addresses, exchange flows, and dormancy levels. This analytical approach offers a transparent view of real-time network activity and investor behavior.
Context ∞ Crypto news frequently employs on-chain metric analysis to provide objective assessments of market sentiment and potential price trajectories. Reports often use these metrics to identify periods of accumulation, distribution, or shifts in long-term holder conviction. Understanding on-chain metric analysis is essential for a data-driven comprehension of cryptocurrency markets.