If you are in the Web3 space, you must be aware of how blockchain works. Chances are that you are familiar with terms like on-chain data, on-chain transactions, on-chain analysis, etc.
And if you have just started following this emerging technology, then gaining an insight into the concepts of on-chain data or on-chain analysis might get a bit tricky.
Let me welcome you to our guide on the Top On-Chain Analysis Tools for informed Crypto decisions in 2024!
In this article, we will explore the most popular on-chain analysis tools which are data analysis tools, and review their capabilities.
Additionally, we will discover how they empower crypto enthusiasts with the knowledge needed to make intelligent decisions. haping the crypto industry this year. We will delve into the world of on-chain
Because doing your crypto research can be difficult without the right tools at hand.
Table of contents
What is On-Chain Analysis?
Chiefly, On-Chain analysis is a powerful approach that combines technical and fundamental analysis to craft more informed crypto trading strategies.
It involves scrutinizing a crypto’s transaction history, network activity, hash rate, and various other data points.
Additionally, on-chain analysis delves into market sentiment and ownership patterns, helping traders identify potential hyp[e and promising projects.
It also keeps tabs on significant players’ movements within the crypto space.
By compiling the indicators, technical analysis, and fundamental analysis, on-chain analysis equips traders with a holistic view of crypto dynamics.
This comprehensive perspective enables them to make more data-driven decisions and adapt to the ever-changing crypto market with greater confidence and precision.
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Why Do You need to use Crypto On-chain Analysis Tools?
The crypto market can be tumultuous, making it crucial to stay informed and make well-informed decisions.
On-chain analytical tools provide a wealth of benefits that can significantly enhance your crypto journey in 2024.
a. Data-Driven insights
On-chain analysis tools offer real-time data and metrics, allowing you to base your decisions on concrete information rather than speculation.
b. Market Understanding
They provide a deeper understanding of market trends, enabling you to identify potential opportunities and threats more effectively.
c. Risk Management
With the help of on-chain metrics, you can better assess the risk associated with different crypto assets and make informed choices to safeguard your investments.
d. Portfolio Optimization
These tools assist in optimizing your crypto portfolio by helping you identify which assets align with your investment goals and risk tolerance.
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e. Timing Matters
On-chain analysis platforms often provide insights into the timing of buy or sell decisions, helping you maximize profits and minimize losses.
f. Community Insights
They offer access to On-Chain data analysis tools, where you can engage with the crypto community, learn from experts, and share your insights.
g. Long-Term Strategy
For those looking at long-term crypto investment, on-chain analysis tools can help in creating a well-thought-out strategy based on historical data and trends.
h.Stay Updated
In the ever-evolving crypto landscape, staying with real-time data is essential; these tools offer precisely that.
On-Chain Analysis Tools
If you are struggling to choose the right one that best meets your requirements following list might help.
1. GLASSNODE
Glassnode is an on-chain analysis tool that provides crypto market insights via on-chain indicators. Founded in 2018,.
Glassnode focuses on helping the research journey of crypto traders with market intelligence.
And other relevant on-chain data to improve users’ trading decisions.
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Features
Many on-chain market indicators for several cryptocurrencies
More than 200 metrics
Customizable dashboards that allow you to add your favorite metrics for certain coins.
More than 10+ years of data
Weighing different metrics for different coins
Trading View integration
Pricing
It offers the following packages
a.Free
b. Advanced $29.month (annual) payment or $39 /month (monthly payment)
c. Professional plan $799 /month (annual payment)
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2. NANSEN
Nansen is one of the most popular blockchain analytics platforms that combine on-chain data with many wallet labels.
Through its real-time dashboards and alerts, users can gain an improved insight into the crypto market.
Tracking smart money is one of Nansen’s core features.
Features
Some in-demand features include Wallet Profiler, ETH tracker, DEX traders, CSV data, and more.
Modifiable smart alerts
Real-time on-chain data for populating blockchains.
Millions of wallet labels provide insights into several crypto assets
With detailed dashboards, you can easily discover new trends in NFTs, Defi, and DAOs.
Pricing
a. Free
b. Standard $100/month and $150/month
c.VIP $1000/month (billed annually)
d. Alpha $2000 (billed annually)
3. DUNE
Dune is an essential blockchain, analytics tool for querying Ethereum data using simple SQL queries from premade databases.
Instead of a whole new script, you can query the database to collect virtually any information hosted on the blockchain.
Features
Breaking down complex data into easy-to-understand information offers simple data collection and visualization (charts, graphs, etc.)
Access to many metrics for on-chain data analysis
Dune extracts blockchain data and arranges it into SQL databases that can be queried.
Pricing
It offers the following packages
a.Free
b. Pre $390 /user/month
4. Etherscan
Etherscan is a blockchain explorer and analytics tool for the Ethereum blockchain.
It offers easy access to real-world data and transaction details such as pending and approved transactions.
Features
Spot early trends such as airdrops on the Ethereum blockchain.
Comprehensive technical reports from Ethereum developers
Track gas fee
Custom alerts for transactions and any big activity
Check details of any public ETH wallet address
Analyze transaction blocks, tokens, and more
Pricing
a. Free
b.Standard $199/month
c.Advanced $299/month
d.Professional $399/month
5. SANTIMENT
This is a detailed market analytics tool that provides accurate data feeds and low-latency signals.
Custom market watches, alerts, chart layouts, and other tools to improve your trading journey.
Features
Leverage on-chain, social, and development metrics
Spot emerging social trends
With customized alerts for trading activities, you can easily spot any malicious act
Social crypto trends
Personalized watchlist for weekly coin updates.
Insights and behavior reports from Santiment ‘s crypto analysis
Pricing
a.Free
b. Pro $44/month (annual subscription)
c.Pro $225 /month (annual payment)
6. MESSARI
This is a decent tool for exploring the crypto space.
More specifically, providing free charting services,long-form weekly reports, and downloadable CSV data. And more.
Messari is widely known for daily insights.
Covering the main sectors in crypto ranging from Defi, Metaverse, and Web3 to NFTs.
Website: https://messari.io/
Features
Access to different charts, screeners, watchlists, and reports.
Helpful tools to analyze charts and reviews.
Access starts as volume, liquidity,on-chain, staking, supply, market, etc.
Pricing
a.Free
b.Pro $24.99/month
7. CRYPTOQUANT
CryptoQuant provides market data and on-chain data via API or any other data analytics tool.
In addition, the platform offers inclusive data such as on-chain data and short /long-term indicators for popular crypto assets.
Including Bitcoin, Ethereum, Stablecoins, and ERC-20 Tokens.
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How Do the Crypto On-Chain Analysis Tools Work?
The on-chain analysis consists of various metrics about the price action of a given digital asset. One classic example is exchange flows.
Centralized exchanges are the banks of the crypto ecosystem where investors can exchange fiat or digital assets.
When executed properly, the on-chain analysis turns transaction data into actionable moves for investors. This data rests on blockchain explorers and on-chain analytics companies.
Such as Nansen incorporates and presents massive quantities of this data. Combine it with millions of labeled wallets, and deliver visualized market signals to investors.
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Disadvantages of using Crypto On-Chain Analysis
The more data available the more substantial the conclusion.
On-chain analysis has to be aware of this. additionally, many metrics commonly applied now may be thrown out in the future with the addition of new data.
Another core limitation of data would be its time window.
On-chain analysis can often be unsuitable for day traders and favors outlining trends instead of scalping opportunities.
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Advantages of using On-Chain Analysis
But still, on-chain data remains an incredible tool for investors and one that is unique to blockchain and crypto assets.
Thanks to the distributed ledger technology these systems are built upon.
Investors receive a bird’s eye view of how liquidity moves.
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This new age of transparency marks a distinct departure from traditional finance, and Nansen provides the toolkit to fully leverage this unprecedented data landscape.
On-Chain Analysis Tools Effect – The tools employed by investors depend on the asset that interests them.
For Defi and NFTs, Nansen provides everything investors need to cut through the noise and make better decisions.
Nansen provides a guide to all the tools investors can utilize.
On-chain analysis functions in the same way as any methodical approach.
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Conclusion
In a world where data is considered the new gold and blockchain is on the brink of transforming how (digital) value is being stored and exchanged. Plus the relevance of emerging on-chain analytics practices cannot be overstressed.
Different players have emerged over the past few years, offering you a plethora of easy-to-apply on/off-chain indicators and data sets.
It is like a thing that not all indicators will prove insightful over time.
Nevertheless, the on-chain analysis phenomena are here to stay and will likely grow further along with the general adoption of Blockchain technology.
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FAQs
On-chain leverages multiple metrics, such as active addresses, transaction volume, supply distribution, and total value locked about the price action of an asset. Realized profits and losses, supply in profit and loss, and realized capitalization are the primary on-chain indicators for market action.
On-Chain as the name implies, refers to blockchain transactions that exist on and have been verified to the blockchain by miners or validators. On-chain also means that transactions have been recorded on the blockchain.
a.Transactions and their volume
b. Active Addresses
c. Wallet balances and Distribution
d. Token in Circulation and Velocity
e. Network Hash Rate and Mining Metrics
f. Token Age Consumed.
You can view on-chain data using analysis tools such as CryptoQuant, Messari, Glassnode, Santiment, Etherscan, etc.
Technical analysis may use candlestick patterns to, for example, identify potential trend reversals. Cryptocurrency traders should be aware of bullish and bearish candlestick patterns. A long wick at the top of a candle body can, for example, suggest traders are taking profits and a sell-off may be occurring soon.
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