What is on-chain analysis, and what can blockchain data show?
On-chain analysis is the study of data recorded directly on a blockchain rather than data from exchanges. Because the ledger is public, it is possible to count how many addresses were active, how much of an asset moved onto or off exchanges, and how the current price compares with the price at which coins last moved. It is a genuinely distinct source of information, and it is also easy to over-read, since an address is not a person and a transfer is not necessarily a sale.
The pages below explain each common metric, how it is calculated, and the specific misreading it invites. Hash rate is included here because it is the on-chain measurement of how much computing power is securing a proof-of-work network.
On-chain analysis terms explained
8 definitions, each with a plain-English version, a technical version, a worked example and the mistakes beginners make.
Where this is taught
This subject sits in the Expert path of the CryptoBipto curriculum, which runs from complete beginner to expert across four tiers. You can browse the full curriculum or read free sample lessons before signing up.
Common questions
Does one address equal one person?
No. A single person can control thousands of addresses, and one exchange address can represent millions of customers. Address-based metrics measure activity, not participants, and treating them as a headcount is the most common error in this subject.
What do exchange inflows and outflows actually indicate?
They show coins moving to or from exchange-controlled addresses. Large inflows are often read as preparation to sell and outflows as movement into custody, but transfers between an exchange's own wallets produce the same signal, so the measurement is noisier than it first appears.
Is on-chain data available for every cryptocurrency?
It is available for assets on public blockchains, which is most of them, but the quality varies. Privacy-focused networks deliberately obscure it, and tokens on shared networks are harder to isolate than a network's own coin.
Related subjects
Educational only — not financial advice. CryptoBipto does not custody funds or execute trades.