What are the most popular on-chain analysis tools—read here

For instance, if you observe that the market cap is lower than the TVL, the project could be undervalued. On the other hand, a project could be overvalued if the market cap to TVL ratio is high.

Glassnode is an on-chain analysis tool that provides users with market intelligence data, such as exchange transfers, information on miners, wallet addresses, and OTC desks. The tool also includes a live data explorer and an inbuilt TradingView, featuring over 200 metrics and over 10 years of data. This makes it easy to compare blockchain metrics across different cryptocurrency projects. Additionally, its website provides users with in-depth market research and analysis pieces on several networks, including, Bitcoin and Ethereum

etherscan is a useful tool for those looking to gain more insight into the Ethereum network. The website shows information on token transfers, pending transactions, beacon withdrawals, gas fees, and nodes, among others. Many blockchain security firms use the tool to track the activity of addresses that steal stolen funds from a network. This information can be relayed to exchanges, which can block such addresses from withdrawing the assets on their platform.

Dune Analytics is a community-focused platform that lets one create dashboards. These dashboards reflect blockchain data, such as user count, total holders, trading volumes, and much more. Although many platforms reflect these statistics as well, the biggest advantage is that Dune Analytics is free-to-use.

Another area where it stands out is niche information that need not be readily available on other platforms. For instance, one can easily access data such as how many tokens the DAO is holding or if any have been sold. On the other hand, dashboards relating to layer 2 solutions and decentralized exchange allow users to see real-time growth in popularity. Another popular dashboard compares data on NFT marketplaces - OpenSea and LooksRare. There are several dashboards to scroll through, and users can even customize them to keep tabs on anything they want.

Santiment is often used by traders to understand the fundamentals behind a network. Metrics, such as developer activity, which tracks how active developers are in the space, are unique to Santiment. Users can access such data to spot emerging social crypto trends. The tool also features customized alerts, through which users can identify any suspicious activity and receive behavioural reports from Santiment’s crypto analysts.

On-chain analytics tools enable investors to measure various aspects of any blockchain network and its associated cryptocurrencies. By combining technical analysis with fundamental concepts, traders can make more informed investment decisions. Although starting out with these tools takes time, investors can gain a deeper understanding of the crypto market through a comprehensive view and valuable insights.