On-Chain Analysis
Analysis of blockchain data for investment signals — transparency as crypto's advantage.
On-chain analysis is a branch of crypto analysis studying data directly from the blockchain — transactions, token movements, wallet states — for obtaining investment signals.
Advantages of on-chain analysis:
Key metrics:
1. Exchange balances • Falling balance = bullish (going to self-custody) • Rising balance = bearish (preparing to sell)
2. Long/Short-term holder supply • LTH (>6 months): diamond hands • STH (<6 months): speculation, volatility
3. Realized cap & MVRV • Realized capitalization = real "cost basis" of market
4. Network activity • Number of active addresses → real adoption signal • Transaction volume
5. Mining metrics • Miner flows (are miners selling BTC?) • Hash rate trend
Tools: