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An On-Chain Look at New Money Entering The Market
Niklas Polk
Key Takeaways
9 min read
  • The report looks at metrics related to new money entering the market, to help determine whether ETH price movements are just temporary or part of a larger trend of new money entering, potentially triggering the next bull cycle.
  • Stablecoin market caps provide a more generic picture, as they include lots of institutions, while the report also presents a retail-focused on-chain metric that gives some insights into adoption.
  • Looking at past performance, the metrics could confirm whether a price increase was just a spike or the beginning of a bull market, although only on a multi-week timeframe.
  • While the current metrics do not indicate an ongoing bull cycle, it doesn't necessarily mean it's not a good time to buy. These metrics typically lag behind real-time market movements and often have difficulty pinpointing market bottoms accurately.


In recent months, the market has experienced substantial volatility, with notable price swings in both directions that often normalize within a matter of weeks. It appears that price momentum alone is not enough to tell if a true bull market is actually brewing and for us to claim that “we are so back” when we are in a very PvP market. To provide more color, we will take a look at another major indicator of bull markets; the influx of new capital.

As new money is injected into the market, it brings in new market participants who can help grow the pie. Retail and institutions alike can help increase overall market caps and can trigger a long-lasting uptrend by investing in the ecosystem. In other words, potential...