On-chain analysis is a relatively new field that involves examining the underlying data and fundamental factors of cryptocurrencies to make informed investment and trading decisions.

This type of analysis relies on information that is publicly available on the blockchain and is unique to cryptocurrency trading.

The key idea behind on-chain analysis is that the blockchain contains a wealth of information that can be used to make more accurate predictions about the future price movements of cryptocurrencies. This information includes things like transaction volumes, the number of active wallets, and the amount of cryptocurrency held by large investors.

The applications of on-chain analysis are particularly promising for traders who are looking to take advantage of the volatile nature of cryptocurrency markets.

By using on-chain analysis, traders can gain a unique perspective that is impossible to achieve with traditional market analysis.

This can provide them with an edge in the market and help them make more informed investment decisions.

On-chain analysis deals with the whole data the blockchain gives you. Cryptocurrency is the first asset class where investor activity can be extracted from massive data sets through each crypto-asset’s public ledger, which captures every on-chain action in history.

Since blockchains are a treasure trove of open, incorruptible financial data, we can pinpoint measures of economic activity in these networks. Through the collection and study of this data, we can measure sentiment and investor behavior.

By analyzing this data, we can extract measures of economic activity within the network, as well as investor sentiment and behavior.

For example, by examining transaction volumes and the number of active wallets, we can gain insights into how much interest there is in a particular cryptocurrency and how many people are actively using it.