#OnChainInsights What Are On-chain Metrics?

On-chain metrics refer to data from a blockchain ledger that can be analyzed to get a sense of market sentiment.

Blockchains are public databases, accessible to everyone that record information relating to network transactions, without revealing the identity of the parties involved.

When investing in crypto on-chain analysts review blockchain transaction data and crypto wallet balances to help determine the market trajectory.

On Chain Analysis vs Technical Analysis

Technical analysis is a method for anticipating market movements by examining metrics like asset volume and prices. In contrast, on-chain analysis extracts information from the blockchain regarding the concentration of token ownership, patterns of trading activity, exchange flows and social sentiment.

A combination of both technical analysis and on-chain analysis offers the deepest insight into current market conditions, so that you can make the right move at the right time.

Common On-chain Indicators

When investing in crypto there is a wide variety of on-chain indicators to choose from, that can help in the evaluation of blockchain activity.