Crypto | Fundamental
On-Chain Analysis
"On-chain analysis exploits public blockchain data to assess investor activity, capital flows, and the fundamental health of a crypto network."
In-Depth Definition
On-chain analysis is a discipline specific to cryptocurrencies that exploits the transparency of public blockchains. Unlike traditional markets, all transactions are visible and analyzable in real time. Key metrics include: active addresses (adoption), transaction volume (economic activity), exchange inflows/outflows (buy/sell intent), SOPR (Spent Output Profit Ratio, indicating whether investors are in profit or loss), MVRV (Market Value to Realized Value, relative valuation vs average cost basis), whale data (large addresses), and miner reserves. These metrics assess the conviction of long-term holders and potential selling pressure.
StarQuant Insight
StarQuant aggregates and contextualizes the most relevant on-chain metrics to evaluate the current crypto cycle phase (accumulation, expansion, distribution, contraction) and anticipate major moves beyond pure technical signals.
Pro Tip
Focus on long-term on-chain metrics (MVRV, Realized Price) for macro direction, and use short-term metrics (exchange flows, funding rate) for entry timing. Both together give complete context.