Everything You Need To Know About On-Chain Analysis as a Crypto Trader

Navigating the sea of crypto data, on-chain analysis tools empower traders with pre-emptive insights into market trends, offering a competitive edge in the volatile world of crypto trading.


A shift is happening, growing DEX adoption is driven by CEX vulnerabilities and decentralization, providing enhanced security and fewer limitations … and with participants becoming more mature, reliable and actionable on-chain data & insights are a necessary component to stay ahead.

What’s cool about crypto markets is that they’re way more transparent than any regular financial markets. Anyone can see all the data. But here’s the big challenge: there’s just so much data to go through. Sorting it all out to find patterns that match your investment goals and discovering the next big thing is tough.

That’s where on-chain analysis comes in. It’s a powerful tool for crypto traders and investors that helps make sense of all that data and find useful insights. This article digs deep into on-chain analysis, talking about why it’s important, how it works and how crypto traders can best leverage it.

The Need for On-Chain Analysis

As a crypto trader, sifting through the enormous amount of data available is a daunting task.


There’s a vast ocean of data to explore:

  • Transactions
  • Wallet Addresses
  • Smart Contract Interactions
  • And so much more!

Identifying potential gems to invest in requires a deep understanding of market dynamics, technical analysis, and fundamental indicators. This is where on-chain analysis tools come to the rescue.


On-chain analysis involves scrutinizing blockchain data to extract meaningful insights about market trends, investor sentiment, and potential investment opportunities. By analyzing the interactions on the blockchain, traders can gain an edge in understanding market movements before they are reflected in price charts. This proactive approach can be a game-changer in the highly volatile cryptocurrency market.

What Are Some Key Data To Analyze Using On-Chain Data?

Live DEX Transactions:

In a popular podcast episode named “The Art of Trading,” the well-known and successful crypto trader,  LightCrypto shared a valuable insight. He mentioned that one of the first things he does before diving deep into research is to observe the live transactions taking place on decentralized exchanges (DEX). This preliminary step helps him gauge the overall on-chain sentiment, understand where the trading volume is flowing, and identify any interesting activities that warrant further investigation.

With tools like Alphanomics’ Live DEX Master, you can easily access and monitor real-time transactions occurring across various DEXs on different blockchain networks such as Ethereum, Binance Smart Chain (BSC), Polygon, and more. Additionally, with Whale Txn Stream, you gain access to real-time transaction data from major whales on DEXs.


If you notice a specific token appearing frequently in these transactions, you can quickly head to platforms like Twitter to explore the associated sentiment or any relevant news. This approach can provide valuable insights for your trading decisions.


Alphanomics Live Dex Master

CEX Inflows/Outflows


Another key metric to consider is CEX Inflows/Outflows, which often provides insights into the overall market sentiment during a specific timeframe.

When there’s a significant increase in CEX Inflows, which suggests that tokens are being transferred into centralized exchanges, it could indicate that investors are interested in converting their cryptocurrency holdings into fiat currency and withdrawing from the market.

Conversely, a high volume of CEX Outflows implies that investors are converting fiat currency into crypto and moving their assets out of centralized exchanges. This trend signifies an influx of capital into the cryptocurrency market.

Discover Alpha - CEX Net Inflows


The same principle applies to whale wallets, which belong to major players with substantial holdings. If these large whale wallets start moving crypto to centralized exchanges for selling, it often signals a potential downward market movement. Tracking these behaviours can be a useful guide for traders.



Top Traders Activity


Top traders are wallets that have excelled in crypto by consistently buying at low prices and selling at high ones, resulting in consistent profits.

Spotting wallets that consistently achieve profitable trades can serve as a guiding light for your trading strategies. By following their lead, you might be able to boost your own profits.

Utilizing Wallet Deep Explorer, one of Alphanomics’ core features, you can access information about their Lifetime Realized Profit and Loss (PnL) and bookmark those wallets that have achieved noteworthy profits.

Alphanomics Deep Wallet Explorer


Moreover, you have the option to dig into the specifics of their trading activity, such as when they purchased or sold a specific token and at what price.




Smart Whales


Smart Whales are crypto wallets known for their success in purchasing a significant number of tokens early and holding onto them for extended periods.

Keeping an eye on prominent holders and their activities offers valuable insights. Their accumulation of tokens signifies confidence, while reductions in holdings could indicate potential cashing out. This data supplements your research efforts and can serve as a compass for your future actions.

Discovery Alpha - Smart Whales


Through Alphanomics’ Smart Whales and Smart Holdings feature, you can effortlessly filter and monitor wallet movements of top VCs, leading wallets, and crypto millionaires.


By observing such actions taken by influential holders, you gain valuable insights into the dynamics of the market.


Spotting the Next 100x Token

On-chain analysis is a powerful tool in a crypto trader’s arsenal. It allows traders to dive deep into blockchain data to uncover valuable insights and potential investment opportunities. By focusing on key data points like token holders, CEX inflow/outflow, and whale transactions, traders can better understand market trends and potentially spot the next 100x token.

With platforms like Alphanomics, the transparency and abundance of blockchain data have turned into a powerful advantage for crypto traders and investors to make the right decisions.