In an attempt to provide more insights to investors, Coinbase has launched three new analytical tools for its customers, as per a blog post. The new data is a culmination of on-chain metrics and investor trends on their exchange. Analytics is now available on the desktop website as well as iOS and Android, July 18, 2019.
More Tools for New Investors
Coinbase’s objective for this launch is to help new traders and investors understand how healthy a network is and what investor sentiment is like for the particular crypto token.
It can be confusing to draw specific insights from a large amount of network data that exists, and it is even more difficult to find the truth in a space riddled with noise.
The three new signals aim to help customers independently create and manage their own crypto investment strategy.
Firstly, Coinbase will allow users to see the percentage of Coinbase customers with large balances in assets which have not increased or decreased their position in the last 24 hours. Large balances are considered as the top ten percent of accounts holding said token. This will allow customers to gauge short term sentiment for a coin and take decision accordingly.
The next indicator shows users the typical hold time for a Coinbase customer’s account before it’s sold or sent to another wallet. This is calculated as the median of the number of days the asset stays in the wallet. This gives users brief insight into short term market cycles.
Finally, the last of the three signals measures price correlations between all different assets. Services like this exist from third parties but the fact that it is updated every 24 hours makes it the most attractive analytical tool introduced.
First Exchange with Built-in Analytics
Many third-party data aggregators like Kaiko and TokenAnalyst exist, but this is the first instance of an exchange giving users insight based on proprietary data, other than traditional data points like order book liquidity and buy and sell walls.
This is a great strategy from Coinbase to acquire new users as a new bullish cycle comes to life. In the future, expect to see more exchanges offer such analytical tools. Coinbase will be hoping their first-mover advantage gives them an edge in the next few months.