In the latest episode of Market Talks, Cointelegraph welcomes Miguel Morel, the CEO of Arkham Intelligence. Arkham Intelligence is a blockchain intelligence company that has built a platform providing information on real-world entities and individuals behind crypto market activity. The discussion revolves around the usefulness of on-chain data for technical traders and what might be next for the Ethereum network with withdrawals activated after the successful implementation of the Shanghai upgrade. Additionally, we explore how on-chain data can help traders navigate through this phase.
The Ethereum Shapella hard fork was the latest major event in the crypto space that went down without a hitch. Morel shares his insights on what the crypto industry and investors should focus on and what the data says about Ether (ETH) liquid staking derivatives. Many have speculated that the Ethereum upgrade would be a buy-the-rumor, sell-the-news event, but not much selling of ETH has been seen yet. Morel offers his opinion on how traders could use on-chain data to develop an investment strategy for Ether.
Many traders and analysts tend to rely too heavily on the same skillset, tools, and approach to the market that were popular in 2017. The question arises whether these strategies are still as relevant today as they were back then, and how on-chain data has changed the game. Morel also gives his data-backed opinion on the controversial topic of whether technical analysis is dead.
On-chain data is a vital tool for technical traders. It enables them to make better investment decisions and develop new investment strategies. On-chain data is useful for investigating issues of liquidity, tracking long-term investors and measuring trading volumes. It can also provide insights into how different market factors are affecting different cryptocurrencies, as well as how different cryptocurrencies are affecting each other.
One area where on-chain data has been particularly useful is in measuring network activity. Analysts can track the number of active addresses, the number of transactions, and the amount of hash power being used to mine new coins. This information, when combined with other data, can provide insights into the underlying supply and demand dynamics of the cryptocurrency market.
A primary takeaway from the Ethereum Shapella hard fork is that investors may now expect increased innovation and technology upgrades in the Ethereum network. This will likely result in increased investor interest and activity in ETH derivatives, leading to potentially higher trading volumes and liquidity for the cryptocurrency.
In conclusion, on-chain data is a useful resource for technical traders looking to make informed decisions about cryptocurrency investments. It can provide insights into network activity, supply and demand dynamics, and the impact of market factors on different cryptocurrencies. Traders who are willing to adapt their strategies and incorporate on-chain data into their approach are likely to make more successful investments over time.
