On-Chain Prediction

Definition ∞ On-chain prediction involves utilizing data and activity recorded directly on a blockchain to forecast future market movements, network behavior, or asset valuations. This analytical approach examines publicly available transaction data, smart contract interactions, and wallet movements to identify trends and potential indicators. It leverages the transparency and immutability of blockchain ledgers for market intelligence. This differs from traditional financial analysis that relies on off-chain data.
Context ∞ Crypto news often features analyses and reports based on on-chain prediction metrics, such as transaction volumes, whale movements, or exchange flows. These insights are used to anticipate price changes, assess market sentiment, or gauge the health of decentralized applications. The accuracy and limitations of various on-chain indicators are frequently discussed among analysts and investors seeking an edge in digital asset markets.