⚡ How To Track Transfer Flows to Find Alpha
DeepDive #2 On Analyzing On-chain Inflows And Outflows Of Tokens
💡 Intro
🥳 Welcome to the 2nd DeepDive Edition of our research Substack!
Each Saturday: we’re bringing you an in-depth Web3 product deep dive, written directly by the product’s team.
None of these guest posts are paid, so if you have a product that you’re a part of: DM us, we’d love to get it added to the schedule!
Today, we have the Blockpour team covering their awesome Transfer Flows tool which easily tracks on-chain inflows and outflows of tokens.
This tool is great for traders, as it lets you track wallets with trading alpha like whales, VCs, and smart traders using their addresses.
It’s also currently a free tool, which makes it a perfect platform to try out this week if BTC can keep its range and alts start moving.
Blockpour Introduction
After months of hard work, the Blockpour team is happy to present the Transfer Flows tool. This tool displays data about token movements between wallets and addresses, including labeled entities such as centralized exchanges (CEXes).
What’s the Point of Tracking Transfer Flows?
With the Transfer Flows tool, traders can monitor wallet addresses of specific traders or entities, to see what the wallet is holding, and how the wallet has been allocating its assets from the moment it withdraws from a CEX. They just need to know the wallet addresses they want to track.
On the business side, crypto start-ups like dApps and other entities can use Transfer Flows to clearly view the journey their users take within their apps or protocols by searching for a protocol’s smart contract address. This includes what their users did with their assets before sending them to specific protocols, which could provide insights for product features and upgrades.
How Blockpour’s ERC-20 Token Transfer Tool Works
The Transfer Flows feature shows the ERC-20 token flows to and from labeled entities, as well as any Ethereum address users wish to search - including wallet and smart contract addresses. Some of the labeled entities include centralized exchanges like Binance and Coinbase, centralized stablecoin issuer Circle, and more.
Each entity tracked by Blockpour displays up to 100 aggregated transfers from all of the entity’s known wallet addresses, as labeled entities such as CEXes might have more than one single on-chain wallet from which they conduct business. The list of labeled entities will grow and evolve over time to include additional CEXes, decentralized exchanges (DEXes), and other entities.
Flows can be filtered in several ways to maximize utility and convenience and can be updated in real-time if a historical search is not required. A date range can be specified for a search involving any of the aforementioned entities or wallet addresses, along with a specific token.
Within any date range, results can be filtered by most recent transfers, token amount, and transfer value in USD. Filtering by most recent transfers will disregard the token amount and transfer value. The difference between token amount and transfer value can be shocking when searching specifically for stablecoins, as a user might expect one million stablecoin tokens to be equal to $1 million! Check the above tweet for an example.
Each transfer card represents an inflow or outflow, depending on where it is situated on the chart. Transfer cards with a red string are outflows from the selected entity, while transfer cards with a green string are inflows into the selected entity. When clicked, each transfer card displays transfer details such as the transfer ID, the tokens and USD value of the transfer, the timestamp of the transfer, the block number, the sender and the receiver’s wallet address, the option to view other transfers from the sender, and a link directly to the block explorer.
At the top right corner of the page, users can see five buttons that each have their own function. From the left, the buttons change the orientation of the results to vertical or horizontal, copy the URL of a search for sharing purposes, recenter the flows chart, and show the slider controls that determine the number of sender or receiver cards displayed and their positioning. The final button closes the Transfer Flows tool and returns users to the app landing page.
Regarding the slider controls, a combined 100 inflows and outflows can be displayed at one time.
To quickly navigate around the cards, toggle the minimap on the bottom right corner of the screen to show what other cards may be off-screen. Toggle between the number of tokens transferred and the USD value of transfers from the button on the button on the bottom left corner of the page.
Also on the transfer cards is the ability to copy the transfer ID or addresses involved by clicking on them. Users can directly see the associated block explorer page by clicking a button on the Transfer Details card. At the top right section of the Transfer Details card is a button that runs a search for other transfers to and from the sender.
Use Cases
The wide array of data filters and display options enhance the usability of the Transfer Flows tool. In just a short time, we’ve seen people across the DeFi ecosystem utilize the tool to track wallets, exchange movements, token velocity, and various other use cases.
Popular Twitter influencer DeFi Mochi recently demonstrated a great use case for the Transfer Flows tool. In the example linked above the influencer checked flows for a wallet that made an 11.3x profit on a single trade, and a 10x on another trade for $EGGS. He tracked this wallet to gain alpha from the market by keeping tabs on a whale that accumulates the altcoin he has been watching. Tracking whale wallets is a common way of refining one’s trading strategy.
Users can also follow the mints and burns of a stablecoin to determine new trends or spot immediate market sentiment changes. In mid-March 2023, Circle’s $USDC stablecoin depegged. Using Blockpour’s Transfer Flows tool, users could watch in real-time how many tokens were being burned and minted to determine that while the market was panicking at first, sentiments quickly reversed.
How to Get Started on Blockpour
Getting started with the Transfer Flows tool is easy - click this link to get started.
Additionally, if you wish to access comprehensive on-chain data through our API, users can learn more by visiting Blockpour’s API page linked here.
About Blockpour
Blockpour is a technology firm that specializes in Web3 data and analytics, providing traders and businesses with the tools and metrics they need to navigate the world of crypto. Users can leverage Blockpour’s real-time multi-chain data feeds via API or intuitive platform interface to identify trends across DEXes, dApps, and AMMs to discover their alpha. To learn more about Blockpour, check out our website and follow us on Twitter and LinkedIn. For sales or inquiries about the API, contact inquiry@blockpour.com.
Disclaimer: None of this is to be deemed legal or financial advice of any kind. Always DYOR!