Quicktake
- The Top Holders chart distinguishes address types
- Multiple usages: Token Burning Monitor + Top Trader’s Position Tracker + Smart Money’s Position Tracker
Understanding Top Holders Chart
The Candlestick Top Holders metric is a table displaying the token balance changes in on-chain addresses.
- Labels: We’ve marked the types of addresses to distinguish burn addresses, staking addresses, CEX addresses, DEX addresses, Millionaires, etc. Turn on the Smart Money mode to see the addresses balance of Smart Money and Debank Tops.
- Changes: Increases in balance reflect buy-in or transfer-in activity. Oppositely, decreasing percentage represents sell-off or transfer-out.
According to our practice, this chart has two primary uses:
- Token Burning Monitor
- Trader’s Position Tracker
Monitor Token Burning
Burning crypto means removing tokens from the circulating supply permanently. Sending assets to a Null Address is the most common burning method.
The token burn could affect the price as it reduces the circulating token amount, which is considered a bullish signal to investors.
For example, on Nov 14, Crypto.com suffered distrust, and its original token, $CRO, dropped over 15% in 24 hours.
We observed that Crypto.com transferred 200,000,000.00 ($11,775,771.11) $CRO to the Null Address.
Although it can’t be confirmed as 100% burning – they might migrate CRO (ERC20) on the Ethereum network to CRO on Crypto.org Chain Mainnet. However, the news boosted market confidence and brought a short-term price rebound.
Video Tutorial
Track Position Changes
Top Holders is also a powerful tool to predict traders’ perspectives.
Take the $FTT crash as an example. On Nov 7, we noticed that among the Top 15 Holders, 3 of the “Millionaire” addresses had cleared all their $FTT holdings.
Turning on Smart Money mode will give insights into the alpha trader’s expectations. For example, on Oct 25, we found three Smart DEX Traders increased their $SHI positions in 7 days.
Data proved those traders got ready beforehand for the $SHI pump.
Last but not least, a decrease in balance sometimes means holding. For example, traders moving tokens to a staking address will also cause their balance to decrease. The specific behavior needs to be judged based on address types and more indicators.
More Indicators, More Complete Pics
When analyzing, combining more Candlestick indicators brings you the whole picture.
For example, when Shibarmy was celebrating a token burn, one of our users calmly pointed out the actual value of the burnt and the unfavorable situation of liquidity removal.
That’s what we call analytics.
