Information is not just power, but a necessary resource for making informed decisions. Success-oriented traders must not only follow market trends, but also analyze metrics that remain outside the standard trading charts. One of the leaders in providing such analytics is the#Santimentplatform. In this article, we will look at why additional analytics are important for traders, what data Santiment provides, and how it can improve your trading results.

Why are standard charts not enough for a trader?

Traditional technical analysis tools, such as support and resistance levels, #RSI or MACD indicators, provide valuable but limited information. The cryptocurrency market is becoming increasingly complex, which requires a deeper understanding.

Here are some reasons why traders should look for additional data:

  1. The complex nature of the cryptocurrency market
    #Cryptocurrencies are not only financial instruments but also technologies. Their value is often determined not only by supply and demand but also by ecosystem development, the number of users, developer activity, and other factors.

  2. Non-obvious metrics
    Indicators such as transaction volumes on the network, wallet activity, social discussions, and liquidity metrics can provide traders with additional signals for action.

  3. The influence of emotions on the market
    The cryptocurrency market is subject to emotional reactions often triggered by news, rumors, or general panic. Sentiment analysis helps to understand how justified current price movements are.

  4. Fighting manipulation
    In a low-regulation environment, the cryptocurrency market is prone to manipulation. Additional analytics help identify unnatural price or volume movements.

What is Santiment?

Santiment is an analytical platform that provides traders and investors with a wide range of metrics to assess the state of the cryptocurrency market. The company was founded in 2017 and has since occupied an important place among analytical services.

The main advantage of Santiment is the integration of data that is hard to find on other platforms. Here are the main categories of analytics offered by the service:

  1. On-chain data (on-chain analytics)
    Santiment provides information about the number of active addresses, transaction volumes, inflows and outflows from exchanges, and other metrics related to the movement of crypto assets.

  2. Social analytics (social metrics)
    The platform analyzes discussions about cryptocurrencies on social media such as Twitter, Reddit, Telegram, and evaluates the level of interest in specific projects.

  3. Developer activity (development activity)
    One of the key indicators for assessing the long-term potential of a project is developer activity on GitHub. Santiment analyzes the frequency of updates and changes in the code.

  4. Market Sentiment
    By analyzing the sentiments of traders and investors, one can understand whether greed or fear predominates in the market.

What Santiment tools are useful for traders?

  1. Santiment Feed
    The platform offers a news feed highlighting significant market events such as changes in developer activity, social discussions, and network metrics.

  2. Social Trends
    This tool shows the popularity of certain cryptocurrencies on social media. For example, if a project suddenly becomes the subject of mass discussion, it could be a signal for growth (or decline).

  3. On-Chain Activity
    Santiment tracks transfer volumes, the number of active addresses, and other network metrics that may serve as indicators of upcoming price changes.

  4. Whale Transactions
    The service records large transactions and assesses how they may affect the market.

  5. Metrics Alerts
    This feature allows traders to receive notifications about significant changes in metrics.

Practical application of Santiment analytics

  1. Understanding market sentiment
    Santiment can show how optimistic or pessimistic traders are. For example, during periods of increased social mentions of Bitcoin, the likelihood of price spikes increases, as this is often accompanied by a mass influx of new participants.

  2. Determining activity levels
    If the number of active addresses or transaction volumes suddenly increases, it may indicate an upcoming price movement.

  3. Monitoring the actions of 'whales'
    Large holders of cryptocurrencies have a significant impact on the market. Santiment allows tracking their actions, which helps to anticipate large price movements.

Why is Santiment trusted?

  • Transparency
    Santiment explains in detail how data is collected and analyzed.

  • Wide user base
    The platform is actively used by institutional investors, analysts, and large traders.

  • Proven effectiveness
    Examples of Santiment's analytics have repeatedly confirmed their accuracy. For instance, in August 2024, the platform successfully predicted the rise of Bitcoin against the backdrop of declining activity in altcoins.

In the context of a highly volatile and complex cryptocurrency market, it is important for traders to equip themselves not only with standard analysis tools but also to use deeper analytics. Santiment provides traders with unique access to data that can serve as the basis for more informed decisions.

As one user of the platform, a trader with 10 years of experience, said:
"Santiment gave me the ability to see the market from a different angle. I used to ignore social metrics and on-chain data, but now I understand how important they are for success."

Using data provided by Santiment, traders can reduce errors, avoid emotional decisions, and increase their profitability.