Santiment Dashboards: Metrics Overview


On-chain metrics:

  1. DAA (Daily Active Addresses)

For a video breakdown of this metric, click here.

The DAA graph shows the number of unique network addresses involved in transactions on a certain date. Simply put, DAA indicates the daily level of crowd interaction (or speculation) with a certain token.

One potential use case for DAA is identifying the tops. Let’s look at an example:

This is a DAA graph for Zilliqa, an ERC-20 project that aims to make blockchains faster and more scalable.

As you can see, there’s been a giant spike in daily active addresses at the beginning of May, coinciding with the price rally. But it only lasted a few days, followed by a rapid decline in price.

A huge spike in DAA can indicate that the interest in a project - both speculative and otherwise - has peaked.

If the increased network activity proves unsustainable over the coming days, it could signal an impending downward trend.

  1. Network Growth

For a video breakdown of this metric, click here.

Network Growth shows the number of new addresses being created on the network each day.

Essentially, this chart illustrates user adoption over time, and can be used to identify when the project is gaining - or losing - traction.

Here’s a Network Growth graph for Aragon, which lets anyone create and manage a decentralized organization on Ethereum.

Between February and December of 2017, the Aragon network grew by 85-750 new addresses each day, and the price loyally followed.

Then, right around the start of 2018, the network growth slowly began to throttle. It indicated that the Aragon user base was already quite deep, and wouldn’t be able to sustain future price growth.

What happened since speaks for itself.

  1. Token Age Consumed + Average Token Age Consumed in Days

For a video breakdown of these two metrics, click here.

  • Token Age Consumed

This graph shows the amount of tokens changing addresses on a certain date, multiplied by the number of blocks created on the blockchain since they last moved.

Spikes on the graph signal a large amount of tokens moving after being idle for an extended period of time.

One potential use case for this metric is identifying when big market players exit the project post ICO. Let’s look at an example:

Here’s the Token Age Consumed graph for Golem, an ERC-20 project that lets you rent other people’s computing power.

We can easily spot several significant spikes over time: each could be a large early investor selling their tokens, which commonly results in a parallel price decline.

  • Average Token Age Consumed (in Days)

This graph shows the average number of days that the tokens were idle before being moved on a certain date.

While Token Age Consumed measures the ‘idleness’ in blocks created, this graph does it in days passed since the last time said token moved.

  1. Exchange Flow Balance + Exchange Flow

For a video breakdown of these two metrics, click here.

  • Exchange Flow Balance

Exchange Flow Balance shows the combined values of tokens moving in and out of exchange wallets on a certain date.

If the value is positive on said date, more of a particular token entered the exchanges than left, and vice versa.

It’s not uncommon for large inflows of tokens to the exchange to precede rapid price growth.

Here’s that exact scenario in case of aeternity, a blockchain platform that enables scalable smart contracts:

When a large amount of tokens flow out of the exchange, on the other hand, the price is likely to fall soon thereafter.

The below graph shows lots of DICE tokens moving out of exchange wallets during a price rally; the price plunged following the event.

  • Exchange Flow

The Exchange Flow graph shows the amount of inflow and outflow plotted separately.

Red spikes show tokens exiting exchange wallets; blue spikes show them moving in.

  1. Transaction Volume

For a video breakdown of Transaction Volume and Token Velocity, click here.

This graph shows the aggregate amount of tokens across all transactions that happened on the network on a certain date.

A spike in transaction volume either signals:

  1. large amount of tokens moving, or
  2. large number of transactions

While not as strong of a price indicator as some other metrics in our suite, Transaction Volume can still be used for thorough mid-term analysis, or in tandem with other indicators.

Here’s the trx volume graph for Basic Attention Token (BAT), a decentralized ad network:

The per-day graph is still a bit noisy, so let’s smooth it out with a 7-day moving average (done with 1 click in our Dashboards):

As you can see, the correlation between price and trx volume can both be evident and strenuous at different times.

That said, the metric remains a strong complementary signal in any serious trading analysis.

  1. Token Velocity

For a video breakdown of Transaction Volume and Token Velocity, click here.

This graph shows the average number of times that a token changes wallets each day.

Simply put, a higher token velocity means that a token is used in transactions more often within a set time frame.

Token Velocity can be used to explain various noteworthy events in the life of a project. For example, here’s Ethereum:

Notice the steep drop off?

The increased activity (and subsequent dip) correlates squarely to a huge ETH mixer that operated between March 2017 and March 2018.

Once the mixer was liquidated, token velocity toppled back to ‘normal’ levels, where it’s remained ever since.

  1. Token Circulation

Token Circulation shows the spread of idle tokens over time. In other words, this graph indicates how many tokens are being hodled, and for how long, on a particular date.

The Token Circulation graph might seem overly complicated at first, but don’t fret! It’s actually pretty simple:

  1. The green line shows the token price.

  2. Other colors show the # of tokens that last moved in specific ‘buckets’ of time:

Dark Red (<1d) = tokens that moved in the last 24hrs (basically daily token circulation)

Maroon (1d-1w) = tokens that last moved between 1 day and 1 week

Orange (1w-1m) = tokens that last moved between 1 week and 1 month

…and so on.

For example, here’s the Token Circulation graph for Zilliqa, starting from the project launch in January 2018, until today:

Notice how all tokens, naturally, start off in dark red (<1d), and eventually move to other ‘time buckets’.

You can see the biggest share of Ziliqa tokens are currently colored light purple (6-12m), meaning they haven’t moved between 6-12 months (many of them likely from the project launch.)

How can you use Token Circulation?

Token circulation can be used to track large amounts of tokens moving after being idle for some time. One potential use case can be identifying when big market players exit the project post ICO.

For example, here’s a Token Circulation graph for Golem (GNT), from June 2018 till now:

We can spot a curious event on July 17th, 2018, which correlated with a huge price dip from which Golem never really recovered.

On that day, there was a spike in the dark red (<1d) time bucket, meaning that certain tokens have gone from ‘idle’ to ‘active’. There was a corresponding dip in the top, pale yellow (18m-24m) bucket, indicating those are the tokens that moved.

We can confirm this by analyzing the differences in time buckets on July 16th and July 17th:

As we can see, ~120 million GNT that were idle between 18 and 24 months (many since the project launch) have moved on June 17th (and have therefore now entered the <1d bucket). This might indicate a large early investor selling their tokens, which commonly results in a parallel price decline.

  1. Top 100 Transactions in a defined time frame

Finally, the last dashboard catalogues the top 100 transactions in a desired time frame, including:

  1. Time of the transaction
  2. Transaction Value
  3. Sender address
  4. Recipient address
  5. Transaction hash

You can adjust the time frame in the upper right corner, or simply by selecting a relevant portion of a(ny) graph, by dragging your mouse cursor from the preferred start date to the preferred end date.

Developer Activity

Developer (or Github) activity aims to show a project’s investment in coding manpower over time.

Why is this important?

A developer’s time is a relatively expensive resource (especially in crypto), so high dev activity implies that:

  1. The project is serious about its business proposition
  2. The project will likely ship new features in the future
  3. It’s less likely that the project is just an exit scam

Simply put, Dev Activity can be used to gauge a project’s commitment to creating a working product, and continuously polishing and upgrading its features.

Dev Activity graph for Basic Attention Token

We measure dev activity differently than most.

Most data aggregators track the number of Github commits, an unfortunate solution that returns skewed data.

At Santiment, we implemented a more reliable approach – tracking the number of Github events that the project generates. Our custom method dramatically improves both accuracy and serviceability of Github data.

If you want to learn more about the difference - and the benefits of our bespoke approach - I highly suggest this piece by Valentin, our CTO.

Dev Activity as a Trading Strategy

While not common, Dev Activity can also be used as a novel trading strategy. A few months back, we tested a portfolio of only the top ERC20 projects by dev activity, refreshed each month.

We backtested the strategy from August 2017 to October 2018. The portfolio turned a profit, but didn’t beat hodling BTC overall.

However, our portfolio was also more volatile than hodling over time, registering significantly larger tops in January and May of 2018. If you were to sell at one of those intersections instead, our Github portfolio would in fact be the winner.

As a custom metric, dev activity can help you understand a project’s dedication to its product, and in turn - its end users.

Social Metrics

  1. Topic Search

Our custom tool lets you search for any term or phrase, and see how often it’s mentioned on crypto-specific social channels, including:

  • Over 300 different Telegram group
  • Over 300 crypto subreddits
  • Discord channels
  • BitcoinTalk
  • Private trader chats hidden from Google search
  • … and more to be added

The results can be plotted over the price of BTC, ETH, or any other coin in our database.

For example, back in September, Ripple (XRP) announced several strategic partnerships which got people re-excited about the project.

Here’s what happens when you search for ‘xrp OR ripple’ in Topic Search (OR is a search modifier - in this case, it lets you search for all messages mentioning either xrp or ripple):

We can clearly spot a large spike in social chatter surrounding Ripple in late September, which coincides thoroughly with XRP’s price rally.

  1. Relative Social Dominance

These dashboards show the relative social volumes for a set of crypto assets. The social dominance is measured across 3 different social channels:

  1. Professional trader chats
  2. Telegram groups
  3. Discord groups

SImply put, whichever token/project commands the most space on the graph is the most talked-about asset at the time:

Per the above graph, almost 70% of social chatter on October 15th revolved around Bitcoin (the massive orange area at the bottom of the graph).

However, only 2 days later, the discussion has moved on:

Bitcoin’s ‘social share’ plunged to just 30%, with another project - Stellar (the blue area near the top) - quickly stealing the spotlight.

That’s how Relative Social Dominance can help you spot the community’s hottest ‘talking points’ - and where the conversation is headed next.

  1. Social Data Feed

This dashboard lets you enter any term, and lists all comments and messages containing said term across multiple social channels, including:

  • Telegram groups
  • Crypto subreddits
  • Crypto Twitter accounts
  • Specialized Discord groups

As an example, here’s what happens when you search for ‘XRP’:

Needless to say, the potential use cases here are limitless.

Introduction to Santiment