What UTXOs Analysis Tells Us About Bitcoin, Litecoin, Dash and Other Crypto-Assets

The IntoTheBlock platform now includes a new set of signals focused on UTXO activity.

Unspent Transaction Output(UTXO) is one those unique architecture elements of crypto-assets that is often ignored in crypto-analytic metrics. From an analytics standpoint, UTXOs are both a unique source of intelligence about crypto-assets but also one that is really difficult to analyze at scale. At IntoTheBlock, we have been working on statistical and machine learning models that extract meaningful intelligence about UTXO transactions. The result of that work resulted in a new section in the platform solely dedicated to UTXO intelligence. Today, I would like to explore some of the key intelligence that we can gain by deeply analyzing UTXO transactions.

A Gentle Introduction to UTXOs

The blockchain universe can be divided into two main architectures for record-keeping of output transactions:

· UTXO-Based: Bitcoin, Bitcoin Cash, Litecoin, Dash….

· Account-Based: Ethereum, Ethereum Classic…

The simplest way to think about UTXOs is as the leftover cryptocurrency change in each transaction. UTXO was initially created as a…