💹 5 indicators often fluctuate before the price runs. 🔰1. Daily active addresses. - Daily active addresses on a blockchain can be understood as the number of wallets that have transactions in a day. - If the price increases but the number of active addresses does not increase, it is often due to artificial factors — low liquidity or whales pushing the price up. - If the price decreases but the trading activity of addresses increases, it shows that people are still building, using, and trading. => Can be monitored for buying. 🔰2. Total Value Locked (TVL) - TVL tells you the value — measured in tokens or dollars — locked in a protocol. Staked, lent, deposited. - Is TVL increasing faster than the price? That means demand is rising. - Is TVL unchanged while the price increases? Liquidity is stagnant. - Is TVL decreasing even though the price seems stable? Capital is being withdrawn. + TVL can still be manipulated. Therefore, it cannot be used independently but needs to be...
Show original
5.61K
22
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.