The rapid growth of the encryption market has attracted a large number of investment users, and the scope of blockchain assets is also rapidly expanding, forming a new round of industry prosperity. Tracking price changes, market value, trading volume and development of investment targets is very important for investors to make correct trading decisions.
While the established exchange Bitfinex seized market share in the new market environment, it also fully considered the market’s demand for market analysis and launched a new function — Santiment. How will this help users conduct timely and effective data analysis? How can users unlock advanced features of Santiment to serve themselves? How can Santiment be used with other functions of Bitfinex to judge the market direction? This article will give you an in-depth look at Bitfinex’s new service — Santiment.
Lack of effective data is a big loss for blockchain transactions
The lack of valid data and the lack of efficient data collection tools are a big loss for blockchain traders. Unlike the traditional stock or securities market, traders can make reasonable valuations of securities or stock prices and market value through channels such as price-earnings ratios or corporate financial reports and news media. The blockchain industry is still in the early stage of development, and most investment targets do not have a standardized pricing method. For ordinary investors, short-term ups and downs are disorderly and random, and they do not know how to judge the market in advance and make timely decisions. If the trading reaction is not correct, the arbitrage opportunity will be missed or even capital loss will be caused.
It is crucial for users and traders to monitor market movements early and react in a timely manner. However, on the one hand, it is necessary to efficiently obtain effective information on the addresses on the chain, abnormal transaction status, and projects, and on the other hand, it is necessary to conduct certain analysis on the market response. These manual real-time observations are not only costly but also inefficient.
Santiment: Efficient data collection for reasonable valuation of investment targets
Santiment is a cryptocurrency and NFT visual browser developed by Bitfinex, which can perform powerful on-chain, social and economic analysis, and can help ordinary users and professional traders make decisions through objective feedback such as market data, sentiment analysis, and on-chain activities. Correct market judgment. This information is curated by blockchain experts and comes from various sources that can provide accurate data.
First of all, through Santiment, we can obtain real-time information on more than 1,900 tokens, such as official websites, social media accounts, market value, price, quantity, circulation, total supply, token ranking and other data sections. Santiment analyzes the social discussion of corresponding tokens from 300+ Telegram channels and social platforms, as well as the popular token data indicators in the market, so as to present users with a wider range of key data indicators.
In addition to this, some of Santiment’s advanced indicators can also help traders better understand the investment value of tokens.
1) Daily Active Addresses (DAA), DAA shows the number of unique network addresses involved in transactions on a specific day, which can show the daily interaction level of a certain token.
2) Developer Activities
Developer activity (or Github) activity can demonstrate a project’s investment in technical development over time, and developers are a relatively expensive resource, especially in the crypto space. The high frequency of developer activities at least shows that the project is serious about business development and will launch new features in the future, which is unlikely to be a scam.
Santiment measures developer activity differently than most data browsers, most data browsers track Github commit counts, which is an imperfect solution that often results in biased data. Santiment customized a more reliable method – tracking the number of Github events generated by each project, greatly improving the accuracy of Github data. The monitoring of developer activities can not only monitor the time and effort invested in the project in real-time, provide a certain basis for project value judgment, but also provide clues for possible announcements or functions.
3) Network growth
Network growth shows the number of new addresses created each day on a particular network, a metric that shows how attractive a network is to users.
4) Transaction volume
Transaction volume shows the total amount of tokens for all transactions that occurred on the network on a given day, with spikes in transaction volume indicating that a large number of tokens are moving or being traded that day.
5) Token Age Consumed
Token Age Consumed shows the number of tokens that changed addresses on a particular date multiplied by the number of blocks created on the blockchain since the last move, spikes on the graph indicate many tokens moved after a period of inactivity, when there is a large amount of inactivity for a long time The movement of tokens on the address may cause market volatility.
6) Token circulation
Token Circulation shows the daily trading volume of a token – if a token sees a significant increase in trading volume on a given day, it would indicate increased activity in the token, which could mean some previously idle tokens are starting to trade.
7) Token Velocity
Token Velocity shows the average number of token wallet changes per day, and a higher token exchange speed means that the number of token transactions will be more frequent within a certain time frame.
8) Exchange Flow Balance
Exchange Flow Balance shows the total value of tokens moving in and out of exchange wallets over time. If the value is positive on a given day, more tokens are entering the exchange than leaving it.
9) Percentage of exchange token supply
The graph shows the share (or %) of the total token supply sitting in exchange wallets over time. Spikes in this graph indicate that more tokens are being transferred to exchanges.
10) Daily Active Deposits (DAD) shows the number of unique deposit addresses that are active on a given day.
11) The MVRV Ratio (Market Value – Realized Value) ratio shows the relationship between a token’s total market cap and its so-called “realized market cap”. The realized value represents the total acquisition cost of all tokens in the circulating supply.
12) Social advantage
This graph shows the percentage of mentions in the crypto community and social media among the 50 most talked about crypto projects. Include:
300+ encrypted telegram channels,
300+ encrypted Kanban,
100 encrypted Discord communities,
Communication with professional traders, etc.
Through these professional sources of information and efficient data analysis, the Santiment page on Bitfinex provides cryptocurrency-related data feeds, exclusive content streams and a regularly updated database of cryptocurrency projects for traders to refer to, providing them with an in-depth and thorough market Analyze the information edge needed to maximize profits and reduce investment risk. What’s more, all available Santiment features, including unlocking premium features, are completely free.
How to unlock Santiment premium features on Bitfinex?
For ordinary users, how to unlock the advanced features of Santiment? First, you need to log in to your own account on Bitfinex or create a new account.
1) After successful login, on the main transaction page, click on a token to see the Santiment metrics button, take BTC/USD as an example, or you can check the Santiment metrics of other Tokens through the search box, by clicking the handshake button in the upper right corner And select Santiment, you can also enter the Santiment page directly from the Bitfinex homepage.
2) Click on the Santiment button and a popup will appear. To be redirected to the corresponding token data on the dedicated Santiment page, you can click on the on-chain, social and project metrics buttons.
3) Here, you can find all available Santiment indicators, some indicators require premium access, which can be unlocked for free.
4) In the pop-up window, you need to agree to Santiment’s terms and conditions first, and then click the “I agree” confirmation button.
5) In this way, you can access the advanced functions of Santiment for free for 30 days. After the expiration, access to advanced functions will be disabled. You need to unlock the functions through the same procedure above, and you can still use them for free.
Bitfinex alpha assists in analyzing market trends and helps determine direction
Users who are familiar with Bitfinex exchange products will naturally not be unfamiliar with Bitfinex alpha.
Bitfinex alpha is a weekly data report launched by the Bitfinex exchange. The data sources of Bitfinex alpha include macroeconomic data such as retail sales and producer price index (PPI) data, as well as active data on the chain such as NFT and Defi. Written by professional market analysts, it is released once a week to analyze the current trends and hotspots in the crypto market, and it is sent to subscribers for free to help users make better and smarter crypto investment decisions.
The current blockchain data analysis industry is still in the initial stage of development, and data analysis tools with different characteristics exist to meet different data needs. Bitfinex exchange was founded in 2012. After more than ten years, it is still a leading exchange with excellent performance. The number of users of the platform accounts for the share of the global exchanges. It is also at the Top level. With more than ten years of development, Bitfinex has a better understanding of the market and traders’ needs than ordinary trading institutions and it is more suitable for providing traders with suitable data analysis. Even though the crypto market is in a relatively low state, Bitfinex still attaches great importance to global cryptocurrency education. Both Bitfinex alpha and Bitfinex Santiment are educational methods explored by Bitfinex Exchange to meet user needs.
Bitfinex Santiment is based on the accurate data source and efficient data analysis capabilities of the Bitfinex exchange, and will certainly be able to forge an accurate “intelligence network” in the encrypted trading market, releasing the value potential of blockchain investment for traders.
