#OnChainInsights On-chain insights are analytical data obtained directly from the blockchain. They allow you to track transactions, wallet activity, the behavior of large players (whales), changes in exchange stocks, and other key metrics of the cryptocurrency market.
Main types of on-chain insights:
1. Exchange flow analysis – tracking the inflow and outflow of assets from centralized exchanges. A large outflow may indicate accumulation, and an inflow may indicate a possible sale.
2. Whale analysis – tracking the actions of large cryptocurrency owners (whales) that can influence the market.
3. Address activity analysis – identifying new and old wallets, number of active users, etc.
4. Miner Status – studying changes in miner balances, which may indicate future selling pressure.
5. Metrics of long-term and short-term investors – the ratio of HODLers (those who hold the asset for a long time) and speculators.
6. MVRV levels (Market Value to Realized Value) – the ratio of market capitalization to realized capitalization, which helps to assess whether an asset is overvalued or undervalued.
Where to get on-chain insights?
Glassnode is one of the leaders in on-chain analytics.
CryptoQuant – offers detailed metrics on all key blockchains.
Nansen – specializes in tracking the movements of "smart money".
Dune Analytics – allows you to create custom SQL queries for analyzing on-chain data.
Why is this important?
Since blockchain is an open database, on-chain analysis gives traders and analysts real-world figures on market behavior, helping them make informed investment decisions.
