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On-chain metrics, like transaction volume, active addresses, and token velocity, provide insights into network activity and investor behavior. Analysts use these metrics to forecast trends, identify accumulation or distribution phases, and detect potential price movements. For example, increasing active addresses may indicate growing adoption, while high token velocity can signal selling pressure. Combining multiple indicators improves accuracy, offering a comprehensive picture beyond price charts. On-chain data also reveals long-term trends and investor sentiment. For researchers, consistently monitoring these metrics enables informed predictions, reduces reliance on speculation, and helps evaluate whether market movements are driven by fundamentals or short-term hype.

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