Predict crypto market trend using DeFi and money flows data

It is important to predict the upcoming crypto market trends to make decisions on crypto investing. However, this is a challenging task because there are too many factors that affect the market. In the uptrend market, people tend to invest more money into DeFi (higher trading volume on decentralized exchanges, more liquidity provided in DEX pools, more money staked in vaults, higher renting/borrowing volume…) Given that the DeFi data is public and not too difficult to retrieve, we propose to analyze DeFi data together with money flow in/out from other traditional markets (oil, gold, stock) to answer some critical questions:

  1. is there a correlation between market trend and DeFi data?
  2. can we train an AI model that can predict short-term or medium-term market trends?

Data: DeFi data (stablecoins, lending market including interest rates, trading volume in DEXes, number of active users…) + money flows (in/out different markets)