Top On-Chain Analysis Tools You Must Know in 2022 - Market247.io
Seasoned cryptocurrency investors understand that keeping a constant eye on the market is an important way to potentially profit. Unlike other financial markets, cryptocurrency transaction data is open to the public, making it simple to identify promising projects. The on-chain analysis enables users to use data discovered on the open-source blockchain to assist traders in making sound trading decisions. This guide will show everything you need to know about top on-chain analysis tools in 2022.
What is on-chain analysis?
On-chain analysis is a branch of research that looks into the fundamentals, utility, and transaction activity of cryptocurrency and blockchain data. Analysts analyze various metrics to gain a better understanding of network movements.
Transaction volumes, block details, price correlation, exchange inflows and outflows, user adoption, and other types of analysis are among the most common.
It can also involve analyzing the market sentiment and ownership to identify hype and good projects while monitoring big players’ movements.
Top On-chain Analysis Tools You Should Know
In this section, we will summarize the most important information about the top on-chain analysis tools you should know. We will also briefly discuss the benefits and drawbacks of each tool from personal experience.
The first tool in the top on-chain analysis tools we can not miss is Glassnode. Glassnode is a company that specializes in blockchain analytics. They offer institutional and retail crypto investors on-chain market intelligence and exchange data through their Glassnode Studio web app and API. Additionally, they offer market analyses and commentary through their Glassnode Insights product.
The product that is made available by Glassnode has a large number of metrics, some of which are transaction data, wallet holdings, miner data, and derivatives volume. In addition to this, it monitors on-chain market indicators including SOPR, Unrealized Profit/Loss, Puell Multiple, Coin Days Destroyed, and many more.
Glassnode, which is widely renowned for its in-depth reporting on market indicators for numerous cryptocurrencies, has launched several applications that give new ways to stay up to speed with market movements. The live data provided by the platform gives you access to a number of charts and dashboards that contain in-depth information on topics such as address activity, balances, growth, supply, hodlers, and more.
- The platform offers an extremely large quantity of metrics.
- Users can manage a large number of assets.
- There is no watchlist feature.
- Doesn't have notifications.
The next tool in the top on-chain analysis tools is Nansen. It is an analytics tool built on top of Ethereum that combines on-chain data with a vast database that is always expanding and already contains millions of wallet labels. It combines on-chain data with a large number of wallet labels. Users are able to obtain a better understanding of the cryptocurrency market thanks to the dashboards and warnings that are updated in real-time.
Even though Nansen is mostly used by cryptocurrency specialists who are interested in conducting in-depth research into on-chain data, new cryptocurrency investors can make use of the tool to increase their knowledge of cryptocurrency.
- Nansen provides a versatile toolkit with numerous utility features to assist users in finding important information.
- Support for up to ten blockchains will be added in the future.
- The label function is distinct and highly accurate, making it simple for users to identify the Smart Money mark.
- Users must pay for more advanced features if they want to use the free version.
- The monthly registration fee is quite expensive.
Dune Analytics was founded with the specific intention of democratizing access to the data that is contained within Web 3.0. Dune Analytics gives anyone the ability to publish their own real-time crypto trends and gain access to those published by others. Because it is a community-based open-source data provider that is also freely available, anyone is able to access and publish data without having to register or pay for the privilege. The fact that Dune Analytics makes on-chain cryptocurrency data accessible and consumable is the innovation that it brings to the world of cryptocurrencies.
After collecting the data, it can be represented on the Dune charts. The unique feature of Dune is that the project does not directly provide data results; instead, it is the community members who share the results, leave comments, and like each other's products. Dune has received a positive response from the community since then.
- Provide comprehensive data, project information, operational situation, and user data.
- It is free.
- Creating a Dashboard on Dune requires users to be familiar with the SQL programming language, which can be frustrating if users want to find information but there is no Dashboard.
- The system primarily supports Ethereum, so the number of blockchains supported is limited.
Etherscan is an Ethereum blockchain explorer. It makes it easy for users to search for and browse transactions and on-chain data including hash and timestamp information.
- Etherscan is currently regarded as one of the most trustworthy and reputable Explorer blockchains.
- Information is accessible to the public.
- Etherscan's "warnings" enable players to forecast and comprehend the NFT market in general, as well as many projects in which users invest.
- The interface is unfriendly for new users.
- To use superior features, you must first create an account.
Santiment is a comprehensive market analytics tool that offers accurate data feeds, low-latency signals, custom market watches, alerts, chart layouts, and other tools to help you succeed in trading.
The platform is well-known for sending out newsletters, reviews, and market reports to its users. You can view and analyze charts for all coins using various on-chain analysis tools such as Sandbase.
- Provides real-time data analysis that can prove to be the crucial difference between profit and loss
- The platform is easy to use
- Compared to other crypto analytics platforms, the fee of Santiment is more expensive.
Messari is a decent tool for investigating the cryptocurrency field. More specifically, it offers free charting services, long-form weekly reports, downloadable CSV data, and other features. Messari publishes daily insights on the most important areas of the cryptocurrency industry, including DeFi, Metaverse, and Web3 in addition to NFTs.
- Advanced techniques for charting and analyzing data
- Each coin uses its own unique metric system.
- Provide accurate data stored on the chain.
- It is difficult for newbies to use.
CryptoQuant is the last tool in the top on-chain analysis tools. The platform offers market data as well as on-chain data via API or any data analytics tool. Furthermore, the platform provides comprehensive data for popular crypto assets such as Bitcoin, Ethereum, Stablecoins, and ERC20 tokens, such as on-chain data and short/long-term indicators.
- Provide different metrics
- Currently accurate charts
- Provide entire historical data
- Enable editing of the charts
- The free plan can not meet the user's demands.
On-chain analysis tools are becoming more prevalent, and it is undeniable that these projects have made significant contributions to the advancement of web3 in general and Crypto in particular. More uses will result from being proficient in using tools in groups and understanding the benefits and drawbacks of combining them.
Hopefully, this article has helped you make better use of top on-chain analysis tools. Which tools do you prefer most? Please share with us in the comment below to discuss more.
What exactly is on-chain data?
On-chain data is all transaction information stored in blockchain blocks. These data are open to the public and provide information on all market investor actions.
Is on-chain analysis necessary?
Yes, all user activities on Blockchain are stored and updated in real-time, resulting in transparent and accurate on-chain data. Therefore, Investors can then make decisions based on market fluctuations and “shark” behavioural analysis.
Market247.io offers fundamental and technique analysis about potential crypto projects and hidden gems. By doing so, we hope to bring information promptly to support investors making investment decisions. All information provided by Market247.io is just as a reference, not an investment advice.
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