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ETH DEX Trading: Profitable and Timely Traders
Jake Kennis
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Key Takeaways
15 min read

  • Traders are much more effective at selling local tops than they are at buying the dips. Collectively, the ‘Top Seller’ segment was able to sell a total of 335,557 ETH across the four local tops. We can track the ‘Top Seller’ segment using the smart alerts below.

  • Only 23 traders fell into the ‘Dip Buyers’ category and most of the volumes were attributed to market-making activity showing that very few wallets can effectively ‘buy the dip’. Collectively, 23 wallets were able to accumulate 1,475,622 ETH across the four pre-defined dips. This trading segment has mainly been sidelined in its ETH positions since the start of 2023.

  • All-time PnL traders who have profited $40k or more have seen a 50% decrease in ETH holdings since May 2022, likely due to Terra collapse and subsequent contagion. The top PnL DEX wallets do not look keen to trade the recent volatility as they also remain sidelined.

Introduction

This report focuses on studying different groups of ETH traders by analyzing their on-chain behavior. The main objective is to determine if traders are able to manage their risk effectively by buying low and selling high. Additionally, the analysis will track the activity of the most successful traders measured by Profit and Loss (PnL) to gain insights into their profitability.

What to Expect?

The report will be broken down into two main sections. The first section will identify timely traders who are opportune during periods of volatility. This section will focus on their trading acumen to buy or sell at lucrative times but it will not focus on their overall profitability.

The second section will look into the...