1/11
π§΅How To Use @nansen_ai 2 Make Money in #Crypto (Part 1)
If you don't know what nansen is go read this article first: brainyield.net/what-is-nansenβ¦
Alright, my degens, here we go...π§
π§΅How To Use @nansen_ai 2 Make Money in #Crypto (Part 1)
If you don't know what nansen is go read this article first: brainyield.net/what-is-nansenβ¦
Alright, my degens, here we go...π§
2/11
Step 1: select a token you're interested in analyzing and input it's token address into the "Token God Mode" (TGM) tool.
We will use $WBTC in our example.
Step 1: select a token you're interested in analyzing and input it's token address into the "Token God Mode" (TGM) tool.
We will use $WBTC in our example.
3/11
Once you're inside TGM there will be 3 pages available to you: 1. Transactions, 2. Token Distribution, and 3. Exchanges.
Ignore "Transactions" (there's not much useful information there). Instead, focus on the other two pages.
Once you're inside TGM there will be 3 pages available to you: 1. Transactions, 2. Token Distribution, and 3. Exchanges.
Ignore "Transactions" (there's not much useful information there). Instead, focus on the other two pages.
4/11
On the token distribution page you'll see the "Percent Held by Smart Money" metric.
For bullish bias we wanna see something like this. Notice the number of smart money wallets and their respective balances have increased over time, which means $WBTC accumulation.
On the token distribution page you'll see the "Percent Held by Smart Money" metric.
For bullish bias we wanna see something like this. Notice the number of smart money wallets and their respective balances have increased over time, which means $WBTC accumulation.
5/11
Next on the token distribution page you'll see the "Top Balances" metric.
Here, we sort by 7day and 30day balance changes and compare top negative vs top positive changes for both those time frames.
Let's sort the $WBTC 7day change and see what it tells us...
Next on the token distribution page you'll see the "Top Balances" metric.
Here, we sort by 7day and 30day balance changes and compare top negative vs top positive changes for both those time frames.
Let's sort the $WBTC 7day change and see what it tells us...
6/11
Notice the majority of inflows are going into bridges, pools and lending protocols, while the majority of outflows are generating from lending protocols. This is bullish because it means market participants think it relatively safe to collateralize and borrow $WBTC rn.
Notice the majority of inflows are going into bridges, pools and lending protocols, while the majority of outflows are generating from lending protocols. This is bullish because it means market participants think it relatively safe to collateralize and borrow $WBTC rn.
7/11
Next, let's look at the "Seniority Distribution" metric.
Notice the majority of $WBTC is held by long-term (1year+) holders. This is bullish because it means there is a large group of investors who believe in the long-term health of the project.
Next, let's look at the "Seniority Distribution" metric.
Notice the majority of $WBTC is held by long-term (1year+) holders. This is bullish because it means there is a large group of investors who believe in the long-term health of the project.
8/11
The last metric we'll look at on the token distribution page is "Unique Addresses for Token."
Here, we can see $WBTC unique addresses only go up over time, which means adoption is increasing over time, which is bullish for the long-term price.
The last metric we'll look at on the token distribution page is "Unique Addresses for Token."
Here, we can see $WBTC unique addresses only go up over time, which means adoption is increasing over time, which is bullish for the long-term price.
9/11
On the exchanges page the first metric we examine is "Top Exchanges."
Here we can see the amt of $WBTC inflows are almost equal to the amount of outflows. This is considered neutral because it means there are roughly the same amount of buyers as there are sellers.
On the exchanges page the first metric we examine is "Top Exchanges."
Here we can see the amt of $WBTC inflows are almost equal to the amount of outflows. This is considered neutral because it means there are roughly the same amount of buyers as there are sellers.
10/11
The last metric we examine is " Exchanges vs Dex Traders."
Notice $WBTC is mostly held by traders and not exchanges, and that the ownership gap is growing over time. This is bullish because less tokens on exchanges means less sell pressure + higher buy demand.
The last metric we examine is " Exchanges vs Dex Traders."
Notice $WBTC is mostly held by traders and not exchanges, and that the ownership gap is growing over time. This is bullish because less tokens on exchanges means less sell pressure + higher buy demand.
11/11
OK, so we used TGM and gauged bull/bear bias for 6 $WBTC metrics...
5 out of 6 metrics = bullish and 1 = neutral.
CONCLUSION: $WBTC is bullish at this time.
Now, just repeat this process every time you want to invest in a coin and u will make money in #Crypto.π€
OK, so we used TGM and gauged bull/bear bias for 6 $WBTC metrics...
5 out of 6 metrics = bullish and 1 = neutral.
CONCLUSION: $WBTC is bullish at this time.
Now, just repeat this process every time you want to invest in a coin and u will make money in #Crypto.π€
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