Smart money flows refer to the investment movements made by experienced, knowledgeable, or institutional investors who possess superior market insights. These capital movements are often considered a leading indicator of future market trends, as these investors typically conduct extensive research and have access to advanced analytical tools. Observing where smart money is allocated can provide clues about impending price movements or shifts in market sentiment. This concept suggests that following the actions of informed participants can yield advantageous investment outcomes.
Context
Crypto news frequently tracks smart money flows, particularly on-chain data indicating large transfers or significant accumulation by institutional wallets. Analysts often interpret these movements as signals for upcoming market rallies or corrections. A critical future development involves the increasing sophistication of on-chain analytics tools, which will provide even greater transparency into the activities of well-informed market participants, enhancing market understanding.
The record $1.43T in DEX volume validates the on-chain migration of capital formation, cementing programmatic AMMs as the primary venue for asset valuation.
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