On-chain analysis is a technique that studies the data recorded directly on a blockchain to understand transaction patterns, asset movements, and network health. Unlike traditional financial markets, on-chain information is decentralized, transparent, and accessible in real time, allowing for the detection of trends and anomalies. Metrics such as active addresses, transaction volume, supply distribution, and total value locked (TVL) are analyzed, which is especially useful in DeFi. Tools like ChainSight facilitate this analysis through interactive dashboards and alerts. Ultimately, on-chain analysis helps investors make informed decisions.
