[Tutorial]: On-Chain Analytics & Metrics 101

[CryptoKas]

Written for data-driven crypto researchers who want to turn raw blockchain data into actionable insights—clear steps, no fluff

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1️⃣ Why On-Chain Analytics Matter

Blockchain data is public and immutable—so instead of guessing, you can:

• Track real user activity and network growth
• Spot accumulation or distribution by whales
• Anticipate potential price moves from exchange flows
• Validate project health beyond just price charts

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2️⃣ Fundamental Network Metrics

Start with these basics to gauge overall usage and interest:

• Transaction Count: number of transactions per day—higher = more activity
• Active Addresses: unique senders or receivers—signals growing adoption
• Gas Spent / Fees: total fees paid—spikes often mean congestion or popular dApps
• Block Size / Weight: data per block—impacts throughput and resource demand

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3️⃣ Value & Flow Indicators

Understand how value moves on-chain:

• Total Value Locked (TVL): assets locked in smart contracts (DeFi, bridges)
• Exchange Inflow / Outflow: coins moving on and off exchanges
• Netflow: inflow minus outflow—positive suggests selling pressure, negative suggests accumulation
• Supply on Exchanges: percentage of supply held by exchanges—declines often signal long-term holding

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4️⃣ Holder & Distribution Metrics

Dive deeper into who’s holding and for how long:

• HODL Waves: age of coins held—shows long-term vs short-term supply
• Dormant Supply: coins unmoved for 1+ year—cold wallet accumulation
• Rich List / Whale Addresses: top holders—monitor concentration and risk of large moves
• Gini Coefficient: statistical measure of wealth distribution—higher = more concentration

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5️⃣ Valuation & Momentum Ratios

Combine value and activity for on-chain valuation:

• NVT Ratio: market cap ÷ daily transaction volume—high NVT can signal overvaluation
• MVRV Ratio: market cap ÷ realized cap—values >1 mean holders are in profit
• Supply Ratio: short-term vs long-term holder supply—shifts can foreshadow trend changes
• Open Interest & Funding Rate: derivatives metrics confirming or contradicting spot moves

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6️⃣ Tools & Dashboards

Leverage specialized platforms to visualize and query data:

• Glassnode: ready-made charts for most on-chain metrics
• Dune Analytics: custom SQL queries and community dashboards
• Nansen: wallet-labeling for smart-money tracking
• Coin Metrics / Kaiko: raw data APIs for institutional analytics

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Your Next Steps

1. Pin this tutorial in On-Chain Analytics & Metrics for quick reference
2. Explore a free Glassnode chart (e.g., Exchange Netflow) and note recent trends
3. Write a simple Dune query to track daily active addresses for your favorite chain
4. Share your top three on-chain signals in the subforum and discuss what they mean

Follow these steps, and you’ll turn on-chain noise into clear signals in no time!