Investing 101

Transactions represent a bundle of intended actions to alter the ledger initiated by a user (human or machine). Transactions are counted whether they execute or not and whether they result in the transfer of native units or not (a transaction can result in none, one, or many transfers). Changes to the ledger mandated by the protocol (and not by a user) or post-launch new issuance issued by a founder or controlling entity are not included here. 

A network with a high transaction count suggests a healthy network while one with a low transaction count suggests a relatively inactive network.  

The value of transactions between native units is the sum value of native units transferred divided by the count of transfers (i.e., the mean size of a transfer) between distinct addresses in that interval. A high value shows meaningful economic activity flows on the network, which is a sign of health but can lead to both bullish and bearish action. Low values show reduced economic activity flows on the network, which is also a sign of health but too can lead to both bullish and bearish action.

The same logic can be applied when using the value of the native units (USD). This metric value is calculated as the Mean Value of a Native Unit * its price in USD. 


Transactions represent a bundle of intended actions to alter the ledger initiated by a user (human or machine)

Transactions

Crypto Indicators

Value is driven by the intersection of supply and demand - here are some factors to help you understand where the “value” (and price) of a crypto currency could go next. 

Miner purchases are the sum USD value of all non-fee transfers received by all mining entities from crypto exchanges during a specific interval. High purchases showcase high demand for crypto, and imply potential bullish price action. On the other hand, low purchases showcase low demand, and imply potential bearish price action.

On the supply side, miner sales can be used as a proxy for the primary supply of a mineable coin. High miner sales correlate with high supply, which shows ease of mining, and hence point to potential bearish price action. Low sales correspond to low supply, showing the difficulty to mine, and hence point to potential bullish price action. 


Miner Purchases and Sales

Transactions