Chain Netflows Z-Score

Overview

This metric uses the Z-score, a statistical measure, to identify deviations from the average volume of token movements. A Z-score significantly higher than 2 or lower than -2 indicates an activity level that is unusually high or low, respectively, suggesting significant deviations from normal token transfer patterns.

How can I use it?

Significant inflows might indicate growing interest or bullish sentiment towards the assets on a particular blockchain, while significant outflows might signal bearish sentiment or a shift in preference towards other networks.

By monitoring inflows and outflows, investors and protocol operators can better manage risk, identifying when a blockchain network might be experiencing instability or when a token might be subject to increased volatility.

Unusual activity detected through Z-scores can also indicate security events, such as breaches or exploits, necessitating further investigation