On-Chain Cryptocurrency Analysis: Exchange Reserve Pitfalls
on-chain cryptocurrency analysis often relies on exchange reserves: they show how many coins are on the wallets of centralized platforms at a given moment. The metric is useful, b…
on-chain cryptocurrency analysis often relies on exchange reserves: they show how many coins are on the wallets of centralized platforms at a given moment. The metric is useful, but you need to read it carefully: reserves work better on a weekly and monthly horizon, sharp jumps on a single exchange are often just technical wallet [...]
Source: https://coinspot.io/en/analysis/on-chain-cryptocurrency-analysis-when-exchange-reserves-can-be-deceptive/