Introduction to On-Chain Analytics
On-chain analytics examines blockchain data to derive market insights not visible through price action alone.
Key On-Chain Metrics
HODL Waves
Shows the age distribution of Bitcoin holdings, indicating long-term holder behavior.
MVRV Ratio
Market Value to Realized Value ratio indicates market tops and bottoms.
Exchange Flows
- Inflows: Coins moving to exchanges (potential selling)
- Outflows: Coins moving to wallets (accumulation)
Active Addresses
Daily active addresses indicate network usage and adoption.
Whale Activity
Large holder movements can signal market direction.
Practical Applications
Identifying Accumulation
- High exchange outflows
- Increasing holder addresses
- Long-term holders accumulating
Spotting Distribution
- Exchange inflows increasing
- Whale wallets selling
- Short-term holder dominance
Tools and Resources
- Glassnode
- CryptoQuant
- Santiment
- IntoTheBlock
Conclusion
On-chain analytics provides unique insights for informed investment decisions beyond traditional price analysis.
