On-chain analysis

On-chain analysis is the study of public blockchain data to understand how coins are being used and held. Because every transaction on networks like Bitcoin and Ethereum is visible, analysts can track things that would be hidden in traditional markets.

Common on-chain metrics include exchange inflows and outflows (coins moving onto exchanges can signal selling intent), the number of active addresses, the age of coins being spent, how much supply is held by long-term holders, the balances of large wallets ("whales"), miner selling and stablecoin supply. Ratios such as MVRV compare market value with the price at which coins last moved, to estimate whether holders are broadly in profit or at a loss.

Firms such as Glassnode, CryptoQuant, Chainalysis and Arkham sell on-chain data and labelled addresses. On-chain signals are useful context but imperfect, because one entity can control many addresses and exchanges move coins between their own wallets.