On-chain analysis

Every transaction on a public blockchain is recorded permanently and can be read by anyone. On-chain analysis turns that raw data into metrics: how many addresses are active, how much value moves, how long coins stay unspent, how much is held by large wallets and how much flows into and out of exchanges.

Investors use these metrics to gauge demand and sentiment, for example treating exchange outflows as a sign of accumulation or watching long-dormant coins start to move. Investigators and compliance teams use the same data to trace stolen funds and sanctioned wallets, grouping addresses that probably belong to the same entity. Block explorers are the simplest tool.

On-chain data is accurate, but its interpretation is not. Labels saying who owns an address are estimates, internal exchange movements can look like buying or selling, and mixers, privacy coins and off-chain activity inside centralized exchanges leave gaps. The metrics are most useful as one input alongside price and the wider economic context.