What is On-Chain Analysis? How to Analyze Crypto On-Chain

Unlike traditional banking Infrastructure blockchainbased digital Ledgers are publicly visible and easily Audited this transparency provides a Gold mine of information enabling Practically anybody to derive insights Into transaction patterns whale movement And underlying Trends dozens of Platforms now extract analyze and Visualize onchain data for easy use Ensuring users are more informed than Ever before and can trade on an equal Playing field with data Savvy funds so Why analyze on chain data well as crypto Users become increasingly Savvy odds are They will interact more with onchain Analytics platforms this is because Onchain data can provide insights into Transaction patterns Network Health Tokenomics and the overall behavior and Trends within decentralized ecosystems Enabling users to make informed Decisions and optimize their blockchain Interactions onchain analysis is the Examination of blockchain data to Understand transaction patterns asset Movements and Network Health aiding Stakeholders in making better informed Decisions within the cryptocurrency Space users will tend to analyze onchain Data for one or more of the following Reasons fundamental analysis by Measuring data points like token holder Counts trading volume and

Decentralization metrics users can Assess the intrinsic value and potential Of a cryptocurrency or project next is Risk management so analyzing transaction Behaviors potential vulnerabilities and Liquidity patterns helps users Understand potential threats and assess The safety of their invest ments next is Auditing so onchain data ensures the Verification of transaction records and That funds and contract actions are Transparent and traceable allowing for Accurate and comprehensive Audits and Then there's Trend analysis so it can be Possible to discern emerging patterns in Blockchain activity over time by Observing these patterns stakeholders Can predict potential future behaviors Gauge the momentum of specific assets or Platforms and make informed decisions Aligned with the evolving blockchain Landscape so how to analyze popular Blockchain data points as the blockchain Landscape becomes more diverse and Competition between platforms and Protocols increases developers have Found ways to extract and analyze dozens Of different onchain data points these Data points now underly the trading and Risk management decisions of thousands Of individuals and businesses and Institutions around the world and it's Now possible to get to grips with this Data without a degree in computer

Science or in-depth knowledge of Blockchain Technology coin market cap Deck scan allows one to easily track Onchain pay making it useful for onchain Traders looking to find trending tokens Or for token holders to analyze the Onchain health of their Holdings here we Take a look at how you can access some Of the more useful data points so first Of all we have total value locked or This is also known as tvl and it's a Measure of the total value of assets Locked in smart contract controlled Addresses on a blockchain so it is Widely taken as a proxy for user demand And activity within Rising tvl generally Considered to be a bullish indicator for The underlying blockchain or Associated Protocols next we have active Addresses and as you might have guessed Active addresses are a measure of the Number of addresses that are active on a Specific Network within a given time Frame typically one day one week or 1 Month changes in the number of active Addresses can indicate whether a Blockchain is growing or declining in Adoption and utility likewise changes in The average transaction size and average Holdings per address can indicate Changes in user demogra Graphics it Should be noted that blockchain activity Tends to increase during bull markets And decrease during bare ones because of

This it's often a good idea to compare Relative changes in active addresses Between two or more chains today most Blockchain explorers provide a simple Active address tracker and these include Ether scan for ethereum BSC scan for BNB Smart chain and soul scan for salana Then we have token holder counts so Imagine if you could see exactly how Many wallets were holding a specific Token at any given time and easily track How this number changes with time or Based on events updates or market Conditions this information could be Used to quickly gauge how well the token Is distributed whether there are a large Number of large holders or whales Identify growing adoption and Potentially spot problems early so today Checking the number of token holders at Any given time is typically a simple Task to do this simply search for the Token pair on coin market cap deck scan From here you'll typically see a field Describing the change in token holders Over time Dex scan also provides a Breakdown of the largest holders Allowing you to monitor their activity Next is revenue so one rapidly growing Measure of blockchain and independent Protocol health is protocol Revenue so This is a measure of the amount of Revenue generated by a platform or Protocol and can be formed from a range

Of different sources such as transaction Fees staking rewards burned coins SL Tokens payments and more so it's Generally agreed that projects with high Revenue to fee ratio are in more Economically favorable positions than Those with a low one and this is doubly Important during periods of stagnation Next we have transaction volume so today There are well over a dozen layer 1 Blockchains and a similar number of Layer 2 Solutions in operation all Processing transactions in parallel so In the race to establish the fastest Blockchain with the highest possible Throughput dozens of approaches have now Been explored and some believe that by Measuring the number of transactions These Chains process on average relative To their maximum throughput it is Possible to determine which chains is Gaining dominance others use transaction Volume data for more practical purposes Such as avoiding transaction congestion Spotting anomalous Behavior or gas Minimization so if you're interested on Learning more about onchain analysis and Onchain data then make sure to check out The link for coin market cap Academy in The description below thank you guys for Watching and we'll see you in the next One