Expanding Cost Basis Distribution (CBD) Coverage: ETH, ERC20, and SPL Now Included

@Sakura please summarize this article, thanks uwu.

TLDR :cherry_blossom:

Glassnode has expanded its Cost Basis Distribution (CBD) analytics to cover Ethereum (ETH), ERC-20 tokens, and SPL tokens, providing deeper insights into investor positioning, market conviction, and capitulation across multiple asset classes.

Key Points :gem:

  • CBD maps out the price levels at which the current supply of an asset was last transacted on-chain, revealing investor behavior and market structure.
  • CBD can help identify investor confidence (buying despite lower prices) or capitulation (drastic changes in supply at certain price levels).
  • The CBD heatmaps show the supply distribution and cost basis lines, which indicate how investors are adjusting their positions as prices move.

In-depth Summary :hibiscus:

Glassnode’s Cost Basis Distribution (CBD) is a powerful analytical framework that provides insights into investor behavior and market dynamics. By mapping out the price levels at which the current supply of an asset was last transacted on-chain, CBD offers a transparent view of where key support/resistance clusters might form, as well as signals of investor confidence or capitulation.

The article explains how to read the CBD heatmaps, which use color intensity to represent the supply distribution and cost basis lines to show how investors are adjusting their positions. When the cost basis lines move up, it indicates that investors are buying as prices rise, signaling strong conviction. Conversely, when the lines move down, it suggests a “buy-the-dip” or DCA mindset, where investors are willing to add to their positions even as the market declines.

Glassnode has now expanded the CBD coverage beyond Bitcoin to include Ethereum (ETH), ERC-20 tokens, and SPL tokens, providing deeper insights into investor positioning and market dynamics across a wider range of assets. This expanded dataset can be accessed through the Glassnode API, allowing users to integrate the data into their own research platforms and dashboards.

ELI5 :lollipop:

Glassnode has a new tool that helps us understand how people are buying and selling different cryptocurrencies, like Bitcoin, Ethereum, and other tokens. This tool shows us at what prices people bought these coins, and how that changes over time. It’s like a map of where all the coins are, and how the owners are moving them around. This can help us see when people are feeling confident and buying more, or when they’re getting scared and selling. It’s a really useful way to understand what’s happening in the crypto markets.

Writer’s Main Point :cherry_blossom:

The main point of the article is to highlight Glassnode’s expansion of its Cost Basis Distribution (CBD) analytics to cover a wider range of assets beyond just Bitcoin. This provides deeper insights into investor positioning, market conviction, and capitulation across multiple asset classes, empowering users to better understand the dynamics of these evolving crypto markets.

Relevant Links :link: