microeconomics of onchain activity

The world of digital assets is often viewed through the lens of macro trends — liquidity flows, interest rates, and global adoption narratives. But beneath those sweeping forces lies a microeconomic layer of on-chain activity that offers sharper insights into the behavior of market participants. By studying how individual holders interact with the network, we can better understand turning points in cycles and the balance of risk and opportunity.

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guiding principals

mvrv ratio

Gauges if Bitcoin is trading above or below holders’ cost basis, helping identify overheated or undervalued conditions.

short term holder sopr

Tracks whether recent buyers are selling at a profit or loss, showing short-term sentiment and capitulation risk.

total unrealized profit/loss

Aggregates paper gains and losses across the network, signaling where market participants sit in the cycle.

funding rates

Derivative market indicator of trader positioning; persistent positive or negative rates highlight leveraged imbalances.

microeconomics of onchain activity

guiding principals

related work

Global Liquidity

Fiscal Dominance

rethinking risk

microeconomics of onchain activity