Version 4.0 of our institutional network data feed — CM Network Data Pro — is here!
Launching today, 4.0 adds several new assets and metrics including on-chain flows to/from exchanges and supply held by exchanges for BTC and ETH.
Introducing on-chain exchange flows and supply held by exchanges
In the lead up to the 4.0 release, Coin Metrics undertook a project to classify exchange addresses on-chain for centralized exchanges that trade BTC and ETH. This classification was performed by using public sources and heuristical clustering techniques.
Knowledge of exchange addresses allows us to determine the supply held by exchanges and to calculate on-chain flows—i.e., the transfer of native units—into or out of addresses associated with exchanges. Version 4.0 adds on-chain flow metrics for Bitcoin (BTC) and Ethereum (ETH). Flows and supply held are denominated in either native units or USD and will be available for i) individual exchanges (exchange-level) as well as ii) in aggregate.
This exchange data gives us unique insights into the behavior of the crypto economy, given the powerful relationship between large, centralized exchanges and the rest of the crypto community. We can use it to begin a dialogue with exchanges regarding “proof of reserves” — which allows a depository institution to prove that they hold a certain amount in reserve. It also allows us to evaluate the health of exchanges, perception of exchange health by traders, and the validity of an exchange’s off-chain volume numbers.
As one example, we could see trader confidence somewhat shaken after the recent legal questions raised of Bitfinex by the New York Attorney General’s office. This resulted in significant out-flows of BTC and ETH from Bitfinex’s wallets.
It is important however to point out that measuring exchange flows and supply held is an imperfect science, so caution must be applied in their application and interpretation. No technique, whether machine-assisted or otherwise, can give a complete and accurate picture and misclassifications and misinterpretations can happen.
For this reason, Coin Metrics welcomes the opportunity to collaborate with exchanges to work with us and the wider on-chain data community to improve the quality of this data. If you’re an exchange and want to discuss, please reach out at [email protected].
The full list of new metrics includes the following:
- Flows, into and out of exchanges (in native units and USD) for BTC and ETH
- Supply, held by exchanges (in native units and USD) for BTC and ETH
- Addresses with balance, greater than X threshold (counts of addresses)
- Thresholds include several USD, native unit, and % ownership of supply cutoffs
- Supply in addresses with balance, greater than X threshold (in native units)
- Same thresholds as above
- Spent Output Price Ratio (SOPR)
- Active supply
- Additional thresholds (1d, 7d, 2yr, 5yr, etc.)
Version 4.0 also adds several new assets:
- Binance Chain (BNB)
- 3.0 included data for BNB prior to its mainnet release, when it existed as an ERC-20 token
- 4.0 adds support for BNB mainnet
- Cardano (ADA)
- Tether (USDT)
- Today, USDT exists across multiple protocols including Omni, Ethereum, Tron and EOS
- The majority of activity takes place on the Omni and Ethereum protocols and thus CM includes support for these
- Because of the difficulty of combining data across protocols, USDT will exist as multiple assets in CM Network Data Pro:
- usdt refers to the asset on the Omni protocol
- usdt_eth refers to the asset on the Ethereum protocol
- Coin Metrics may add USDT support for Tron and EOS protocols in subsequent releases
On June 18, 2019, Coin Metrics will be transitioning all of its legacy Community data infrastructure over to our Pro infrastructure.
From the perspective of a Community data user, this will mean a few things:
- More reliable data
- Enhancement of metric calculations for several metrics including the usage of Coin Metrics’ own CM Reference Rates for all USD price-related metrics
- New metric namings and full data dictionary
- The addition of several new assets and the deprecation of some smaller, older assets
There are several reasons for this transition. First, it improves the infrastructure for Community users and reduces the burden of providing technical support across two systems. Secondly, and most importantly, it enhances the data for our community.
Coin Metrics’ legacy Community API will be shut down on July 15, 2019. If you are an existing legacy Community API user, you will be asked to switch to a new API starting June 18, 2019. The details of the new API including its URL will be announced at that time. This new API will not require an API key but it will feature different endpoints and thus existing systems will require reconfiguration.
Thank you for your support! If you have any questions, don’t hesitate to reach out at [email protected].