In the public chains, data is accessible to everyone. Yet, the act of navigating and analyzing massive on-chain raw data to search for potential investment prospects for “normies“ is hardly feasible. That’s when on-chain data analysis tools come as a solution in this equation.
With on-chain data analysis tools, traders and investors typically analyze certain market movements and money flows; some may dig deeper into the wallet movement to identify the hidden layer of information.
But as a normie, you might wonder: With such a plethora of tools in the market, each offering a variety of services, where do I even begin? Stay tuned as we delve into this article to discover the answer.
On-chain Data Analysis Tools
Driven by the strong demand for a better understanding of the information circulating the crypto landscape, many projects and solutions are entering the analysis of the analytic tool space.
Blockchain Explorer
Blockchain explorers are among the first tools everyone surfing on-chain should know. These explorers provide fundamental insights into the real-time transaction history of individual tokens. These platforms offer public verification of blockchain status once the network goes live.
While users can run their own archival nodes and capture raw blockchain data on the public blockchain themselves, they are relying on cross-asset data providers when it comes to analyzing the blockchain over time and comparing them with other chains since these explorers are usually chain-exclusive such as Etherscan or Solscan.
On-chain Data Tools
While blockchain explorers offer a snapshot of blockchain data, on-chain data tools are designed to deliver a more comprehensive and detailed insight into a crypto asset. On-chain analytics delve into the identity of asset users, how much of it they are using, and how assets are utilized.
The extent of coverage and depth of analysis provided by these tools depend on the provider. Some are designed for processing general transaction data and aggregating on-chain information, while others are tailored to specific requirements, which can be subcategorized with such as:
- On-chain analytics: Dune analytics, DefiLlama
- Contract audit: Etherscan, Dex Tools
- Fundraising: Cryptorank, Messari
- Social analytics: AlphaScan, TweetScout
- Token analysis: CoinGecko, CoinMarketCap
- Wallet tracker: AlphaTrace, Arkham
Limitations
Although there are many well-known, popular on-chain data analysis products available in the market with many new ones emerging every day to serve the specific needs and requirements, users will likely need to compare data from many sources and different tools to make the most accurate evaluation. Some tools require technical knowledge such as SQL to make the most out of it. Many projects keep their features tucked behind a hefty paywall that users need to subscribe to or upgrade to the pro plan to fully access.
Not to mention that majority of the data analysis tools are exclusive to some chains, such as Bitcoin, Ethereum, and a selection of EVM chains like BSC, Polygon, and Avalanche, along with their respective on-chain applications. Given the massive volume of data within the blockchain ecosystem, it is hard to spot all-in-one tools spanning multiple chains, providing real-time on-chain data with comprehensive features. And even if such tools exist, they are unlikely to be available for free.
Wrap Up
Rapid expansion in the on-chain data analysis market shows us that it has come a long way, in the years to come these technologies will only get stronger and more in-depth.
Until that, resources to discover valuable insight like on-chain data tools remain a ray of hope for a more initiative future as they tap into the vast, yet unexplored, potential of on-chain data to improve data quality and user experience.
