Why Market Driven?
The market is time to time heavily influenced by the short temperament of the market participant. To handle and get track of the sentiment of market participants, data that figure out their movements in the closest and fastest manner possible is required. On-Chain Data provides valuable macro market insight and information on activities that involve blockchain transactions and even covers exchange flows that analyze blockchain transactions that involve exchanges. However, it has difficulty in exploring what kind of trades are occurring inside the exchange.
Thus, to have a complete and broader view of the market as a whole, data that covers activities inside the exchanges so-called ‘market data’ is needed. Also, as institutional investors are coming into the cryptocurrency market and more retail investors are joining the market, a futures market that deals with more quantities of funds and serves as risk management is beginning to play a bigger role in the market. Acknowledging this importance, CryptoQuant provides market data and indicators to help investors to figure out traders’ sentiment.
Rather than providing basic market data that could be acquired by freely provided exchanges’ information, CryptoQuant utilizes its on-chain expertise of labeling wallets and on-chain data by combining them with basic market data to draw additional values.
Some indicators or data such as ‘Estimated Leverage Ratio’ can’t be easily drawn from freely provided market data and only be derived by data providers who have access to accurate on-chain accumulative data. CryptoQuant provides users with exclusive market data that are combined with on-chain data to help investors go one step further in gaining market insight.
CryptoQuant provides more detailed market data by two methods.
CryptoQuant's broad exchange coverage
First, CryptoQuant covers a greater number of exchanges than other data providers.
More coverage on exchanges means that CryptoQuant’s market data is the closest meaning to the true market data.
Second, CryptoQuant provides some market data by a minute window and volume-weighted average price (VWAP) to produce instant and comprehensive market data.
Market sentiment could be changed in a short period of time especially in the futures market. In order to respond to such changes, data that covers in a minute window is critical to investors to take their profits or protect their wealth. Also, the simple mean of total exchanges’ market data has difficulty in accessing the true market and distorts the true means making VWAP data more valuable.