Long Vs Short Term
Onchain Volume

Onchain Volume

The term "Onchain Volume" refers to the sum of all transactions and activities that occur on the Bitcoin blockchain. This comprehensive metric encompasses not only the volume generated by routine transactions but also movements from specific groups: the long-term holders, or "Long-Term Holders (LTH)," and the large holders known as "Whales." These latter are market agents who possess considerable amounts of Bitcoin, and whose transactions can significantly influence the market due to their substantial volume.

To analyze "Onchain Volume," we often have access to analytical tools that allow the selection of different indicators. A dropdown menu, as described, typically offers the option to choose between viewing the volume of all network participants ("All"), only the volume of long-term holders ("Long-Term Holders"), or exclusively the volume of the "Whales." The selection of each of these indicators provides a distinct view:

  1. All: Covers the global onchain volume, reflecting the total activity on the blockchain, including all categories of users and transactions.

  2. Long-Term Holders: Filters the volume to highlight the activities of investors who hold their assets over extended periods, offering insights into how this specific segment contributes to the total transaction volume.

  3. Whales: Focuses on the volume associated with large holders, whose large-scale transactions can have noticeable impacts on the price and liquidity of the market.

Understanding "Onchain Volume" through these specific indicators is valuable for gaining a clear view of the overall activity on the Bitcoin network and discerning the behavior of different groups of holders. Analysts and investors use this information to assess the health and dynamics of the market, as well as to develop more informed investment strategies.