TokenAnalyst Newsletter Vol.5
This week has shown a 12% BTC price drop followed by a 7% rebound, which can both be correlated to exchange flows. Check below for more details, as well as the latest TokenAnalyst feature updates and research insights using the TokenAnalyst Pro API.

Highlights

  • TokenAnalyst News: USDT metrics on the Omni blockchain are now available via our API.
  • Research: Analyzing the PlusToken scam, correlating USDT supply to BTC price and extracting peak trading hours from exchange flows.
  • Exchange stats: Supply and demand for crypto assets.
  • Network stats: Usage metrics of native tokens, stablecoins, and ERC20s.

TokenAnalyst News

Omni network stats

  • We're excited to reveal new API endpoints that expose Tether USDT metrics from the Omni blockchain!
  • You can now check core Tether stats, e.g. how much Tether has been minted and burned.
  • You can also see the flow of Tether (Omni and ERC20) into and out of exchanges.
Check out Tether exchange flows on our website

The Week's Research

Bloomberg: BTC price drop not due to scam

  • Bloomberg reported on last week's BTC price drop based on insights by our co-founder @sidshekhar24.
  • While there was rampant speculation in the community about the price drop being caused by liquidations from a Ponzi scheme known as PlusToken, our exchange flow data showed otherwise.
  • See here for our look into the plus token related addresses and see here for live exchange flow data.

USDT supply is correlated to BTC price

  • Tether plays a huge role in providing liquidity to the market as a whole and tracking how much of it is being minted/burned across blockchains is key.
  • The above plot visualizes the relationship between BTC price and Tether supply.
  • We can see strong correlations, especially in times of BTC price hikes.

Kraken flows show active hours of traders

  • Our new hourly API endpoints give insights into peak trading hours during the day.
  • Above, we see the Kraken USDT (Omni) exchange flows, which show the highest activity between 13:00 UTC to 20:00 UTC.
  • This makes sense because Kraken is primarily used in Europe and North-America.

Weekly Exchange Stats

  • Analyzing transactions to and from exchanges can give a good indication of the supply and demand of a crypto asset.
  • An increase in outflow of a crypto asset from exchanges corresponds to decreased supply.
  • An increase in inflow of stablecoins to exchanges corresponds to increased demand.

Bitcoin

  • Until 14th August, BTC worth 117M USD was deposited into exchanges, with a price decline of 12%.
  • From 15th August, BTC worth 94M USD was withdrawn from exchanges with a price hike of 7%.
  • Large inflows increase the supply of crypto assets, which can lead to a decrease in price. Large outflows diminish the supply, which leads to price hikes. 

Ethereum

  • ETH followed the BTC price drop until 14th August (-11%) and price hike from 18th August (+5%).
  • ETH did not follow the BTC price hike between 15th and 17th August but remained stable instead.
  • This might be due to large ETH exchange flows during that time, which are known to break the correlation between BTC and ETH (see last week's newsletter).

Stablecoins

  • Until 16th August, stablecoins worth 142M USD left the exchanges, indicating a low demand in crypto assets.
  • From 17th August, inflows and outflows were mostly on par, indicating that traders are not withdrawing stablecoins anymore.

Overview

  • BTC and ETH exchange flows are declining
    • Inflows down by 18%
    • Outflows down by 15%
  • Stablecoin exchange flows are declining as well
    • Inflows down 24%
    • Outflows down 24%
  • The reduced activity might have been caused by the price drops at the beginning of the week.
Check out more exchange stats!

Weekly Network Data

  • Analyzing general network data of a crypto-asset allows us to evaluate the current sentiment of traders towards a respective token.
Native Tokens
Stablecoins
ERC20 tokens

Key insights:

  • As in previous weeks, BTC and ETH volumes have decreased again (this week by 5%).
  • After two weeks of increase (+30% and +5%) the on-chain volume of stablecoins has decreased by 9% this week.
  • ERC20 tokens have doubled their on-chain volume, with an increase of 107% on average.
Check out our TokenCompare tool
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