๐๐-๐๐๐๐๐ ๐๐๐๐๐๐๐๐
Most people look at crypto through charts like:
โข Price is going up
โข Price is going down
โข Trending โBUYโ
โข It's getting dip, โSELLโ
Well there's another place where you can find information, the blockchain itself, this is where on-chain analysis comes in.
๐๐ง-๐๐ก๐๐ข๐ง analysis means studying publicly available blockchain data to understand what is actually happening on a network. Think of it as becoming a blockchain detective.
๐๐ก๐๐ญ ๐๐๐ง ๐ฒ๐จ๐ฎ ๐ฌ๐๐ ๐๐ง-๐๐ก๐๐ข๐ง?
Depending on the blockchain, you can investigate things like:
โข Wallet balances
โข Transactions
โข Token transfers
โข Whale movements
โข Smart-contract interactions
โข Trading activity
โข Liquidity
โข Holder distribution
โข Protocol activity
โข New wallet activity
You don't need to know someone's real name, you can just follow their wallet address and observe what that address is doing on-chain.
Example
If a token suddenly starts trending and everyone on X is shouting:
โข This token is about to 100X!
Instead of immediately buying, you investigate, you check the token's holders, and you discover that a small number of wallets control a huge percentage of the supply.
Then you check the blockchain and notice several large wallets recently received tokens, now you have questions:
โข Who owns these wallets?
โข Where did those tokens come from?
โข Are they selling?
โข Is liquidity sufficient?
โข Is the supply concentrated?
You're no longer relying entirely on someone's tweet but looking at the data.
๐๐ก๐๐ฅ๐๐ฌ
A whale is simply a wallet or entity holding a significant amount of an asset relative to its market.
Tracking large wallets can sometimes provide useful clues, if several large wallets are accumulating, that's interesting too.
If large holders are suddenly sending huge amounts of tokens to exchanges, that's also worth investigating.
Remember, a wallet movement is a clue and not a guaranteed prediction, you don't automatically know why someone moved their tokens.
๐๐ง-๐๐ก๐๐ข๐ง ๐๐๐ญ๐ ๐๐๐ง ๐๐ฅ๐ฌ๐จ ๐๐ฑ๐ฉ๐จ๐ฌ๐ ๐๐๐ ๐ ๐ฅ๐๐ ๐ฌ
Imagine a project claims they have thousands of holders, you investigate the blockchain and maybe most of those wallets hold tiny amounts while a few addresses control most of the supply.
Or a project claims to have huge activity, but you discover that much of it comes from a small number of wallets, this doesn't automatically prove fraud, but it tells you ๐๐ข๐ ๐๐๐๐ฉ๐๐ซ.
๐๐จ๐จ๐ฅ๐ฌ ๐๐จ๐ฎ ๐๐๐ง ๐๐ฌ๐
A block explorer lets you inspect individual transactions and wallet activity.
Depending on the chain, examples include explorers such as Etherscan, Solscan and others.
Analytics platforms can take this information further by helping you study things like:
โข Wallet behaviour
โข Token holders
โข Protocol activity
โข Liquidity
โข TVL
โข Trading volume
โข Historical movements
๐๐ง-๐๐ก๐๐ข๐ง ๐๐๐ญ๐ ๐ข๐ฌ ๐ง๐จ๐ญ ๐ ๐๐ซ๐ฒ๐ฌ๐ญ๐๐ฅ ๐๐๐ฅ๐ฅ.
A wallet can belong to an individual, exchange, protocol, market maker, DAO, treasury or another entity.
One transaction doesn't tell you the whole story, good on-chain analysis combines blockchain data with other research:
โข On-chain data + fundamentals + tokenomics + market conditions = better research.
Don't see a whale buying and immediately ape in, don't see a whale selling and immediately panic.
Investigate, because one of the biggest advantages of blockchain is that a lot of its activity is publicly verifiable.
You just need to know where to look and what you're looking at, that's the difference between I heard someone say this, and I checked the blockchain.
Happy Mashujaa Day! ๐ฐ๐ช
Happy Mashujaa Day! Today we celebrate Kenyaโs heroesโpast and presentโwho fought for our freedom and continue to inspire unity, courage, and progress. Their sacrifices built the foundation of our nation. Letโs honour them by living with pride and purpose. #MashujaaDay
Nature never goes out of style , just pure beauty doing its thing. Moments like this remind me how small my worries are and how big this world is. ๐ฟ
What's your current view ๐?
Today we pause abit to remember the friends we once had , went to the street with but never came back to their rooms,their lives were cut short not because they were criminals but because the government were scared of their own flags,the government,were scared of water bottle and whistles...
As we remember them today, let's wake up from the innuendos of roads and talanta..the affordable housing without respect for lives is unconstitutional
Stop waiting for the perfect moment. Stop doubting yourself.
You don't need to have everything figured out. You just need the courage to take the first step.
Champions don't just dream. THEY TAKE ACTION!