On-Chain Supply Analysis

Definition ∞ On-chain supply analysis involves examining the distribution and movement of cryptocurrency tokens directly on their respective blockchain ledgers to gain insights into market dynamics. This analysis considers metrics such as the age of coins, the concentration of holdings, and the flow of assets between different wallet types. It offers a transparent view of real-time supply-side activity and investor behavior.
Context ∞ On-chain supply analysis is a foundational practice for understanding the fundamental health and potential future price movements of digital assets. Its situation often reveals periods of accumulation or distribution by various investor cohorts. A critical future development involves integrating more sophisticated machine learning models to identify subtle patterns and predictive signals within the vast datasets of blockchain transactions.