Recently, analyzing on-chain tags/clusters to observe capital flows feels a bit like navigating through fog: useful, but not to be fully trusted. If an address is labeled as “Institution/Whale,” it might just be a multi-signature wallet switching holdings; conversely, a bunch of small accounts could also be controlled by the same group of people. To put it simply, I prefer to treat it as a clue, combined with active addresses and net inflows, otherwise it’s easy to be led astray by the phrase “smart money.”

In the group these days, there’s been talk about stablecoin regulation, reserve audits, and various rumors of “de-anchoring,” and when emotions run high, these tags become more like psychological comfort pills: seeing a certain cluster with inflows and outflows, then starting to imagine a storyline. I now prefer to slow down, first observe the real on-chain flows and changes in lending pools, before deciding whether to act.

If I had only been tracking a “whale address” for copying trades back then, I might have already been washed back and forth into doubt… For now, I’ll keep doing this, continue monitoring the data.