Cryptocurrency analytics firm DataLight announced the launch of a new analysis system for examining cryptocurrencies this Tuesday. The company says, rather brazenly, that it is the first company to apply traditional stock market metrics to cryptocurrency analysis.
According to DataLight, its new set of tools will be useful to both professional and retail investors.
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The new system works by gathering huge swathes of data and presenting them to traders in a simplified form. Traders can also examine the data in charts and graphs, using a set of tools, and perform fundamental analysis of the cryptocurrency market.
DataLight claims that it analyses over three million messages on social media platforms and almost ten million trades on cryptocurrency exchanges every day.
The firm also takes all available information on the bitcoin and ethereum blockchains. That data is then presented to DataLight users in a more understandable form and allows them to customize it according to their own trading needs.
DataLight develops crypto indexes
A number of indexes and market performance metrics have been developed by the firm that allow users to examine the data gathered by DataLight.
For instance, the company has created a ‘Hype Index’ that shows how popular an asset is at a given time and how much it is being discussed on social media.
Another useful tool is called ‘Buy Market.’ This allows DataLight users to see how many people have bought a particular digital asset at its current market price.
Traders can access DataLight’s tools online, but the company also offers integration with trading platforms and analytics services.
Services such as DataLight’s are growing in popularity as traders, particularly in the institutional space, try to get a better handle on the swathes of often disparate data which are available to them. A lack of benchmarks and other trustworthy pricing data has been a major barrier to hurdle for firms or individuals that want to enter into the market.