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What is on-chain data?

On-chain data shows activities via transactions recorded on blockchain networks

Being "On-Chained" Provides a Bird's View of the Blockchain

On-chain data comes from a public ledger system that allows people to look into all transactions that are recorded on to it. Utilizing this transparency, various raw blockchain data containing information such as coins sent amount and time, wallet address, and fees that are being paid to a miner which show the details of the activities via transaction can be extracted from on-chain data. There is little room for hiding in the on-chain process and being "on-chained" lets you be the watcher of the bitcoin network.
Upon this raw information, if we put our resources into analyzing them, the on-chain analysis can be a new framework for bitcoin valuation which allows traders to establish an edge. With on-chain analysis, traders can see what happens in the networks that finally results in price movement. For example, exchange flows data gives us an insight into actual major players' money flow in the networks. CryptoQuant aims to provide full historical on-chain and market data which allows you to build an in-depth understanding of the markets, therefore, leading you to make robust trading strategies.
Bitcoin Sell-Off
Bitcoin Exchange Flows
Only CryptoQuant's on-chain data predicted the Black-swan situation. (Chart Link: cryptoquant.com/overview/btc-exchange-flows/104)

CryptoQuant Visualizes Blockchain Activities: On Chain Analysis

CryptoQuant makes blockchain data "ready-to-use" with on-chain metrics

It is true that blockchain data is public for everyone to see but it is hard to interpret them. Everyone says that blockchain activities are open and decentralized but what good is there if we lack the ability to see them? It is not easy for all people to know what to look for in a single transaction data.
That's where CryptoQuant comes into play. CryptoQuant first collects all the data that comes from the transactions happening on the blockchain. When on-chain data gathering is done, defining them adds additional meaning. For example, CryptoQuant differentiates blockchain data that is only involved with exchanges' wallets and extracts second hand information such as the total amount deposited in the exchange or how much has flown into exchanges in a given time. This second-hand information makes a huge impact on trading by providing investors a valuable insight.

On-chain indicators: How do we utilize on-chain data?

CryptoQuant Academy provides rich explanations of meaningful indicators and exclusive metrics in the following pages including interpretation, calculation method, and use cases. On-chain data is still in the early stage for an investment of cryptocurrencies. Our team hopes you join the world of on-chain data for proactive movement with unique indicators which in turn make chances for being profitable in cryptocurrency markets.

Market Data

Bitcoin/
├── Status/ // status of Bitcoin entity
├── Exchange-Flows/ // on-chain statistics of exchanges
├── Flow-Indicator/ // mpi, whale ratio and other flow indicators
├── Market-Indicator/ // stablecoin supply ratio and other market indicators
├── Network-Indicator/ // nvt, nvt-golden-cross and other network indicators
├── Miner-Flows/ // on-chain statistics of miners
├── Inter-Entity-Flows/ // on-chain statistics of flows between entities
├── Fund-Data/ // fund related data
├── Market-Data/ // price, capitalization
└── Network-Data/ // general statistics of Bitcoin network
Ethereum/
├── Status/ // status of Ethereum entity
├── Exchange-Flows/ // on-chain statistics of exchanges
├── ETH2.0/ // Ethereum 2.0 statistics
├── Fund-Data/ // fund related data
└── Market-Data/ // price, capitalization, market indicators
Stablecoin/
├── Status/ // status of stablecoin entity
├── Exchange-Flow/ // on-chain statistics of exchanges
├── Market-Data/ // price, capitalization, market indicators
└── Network-Data/ // USDT, PAXOS, USDC, DAI, TUSD, SAI
ERC20/
├── Status/ // status of erc20 entity
├── Exchange-Flow/ // on-chain statistics of exchanges
└── Market-Data/ // price
Not all indicators or on-chain metrics are currently covered in CQ Dataguide. Our research team is working on the others to provide meaningful analysis tools. If you have data on-chain to be analyzed, please submit an idea form at Suggest Idea.

Market Sentiment

Market sentiment, deciphered through the work of on-chain analysis, is a linchpin in understanding the dynamics of cryptocurrency markets. On-chain analysis delves into the real-time transactions recorded on the blockchain, unraveling insights that extend beyond surface-level market trends. Realized value, a key metric in on-chain analysis, encapsulates the actual worth of a cryptocurrency based on the movements of its coins over time. This contrasts with market value or market capitalization, providing a nuanced perspective that reflects the true value of active coins rather than the entire supply. By examining on-chain data, analysts can discern shifts in market sentiment—whether it be the actualization of bullish or bearish trends. This process stands in stark contrast to off-chain data, offering a more granular and accurate portrayal of investor behavior. In a landscape where the pulse of the market is determined by intricate on-chain analysis, the ability to distinguish between realized value and market capitalization is paramount for crypto traders navigating the dynamic currents of the cryptocurrency space through market intelligence.

Final Notes

In conclusion, the realm of on-chain data unveils a profound perspective on cryptocurrency markets, serving as a beacon for informed trading decisions. As highlighted by CryptoQuant's curated dashboards and meticulous chart analysis, on-chain metrics provide a bird's-eye view of blockchain activities, allowing traders to transcend the surface-level market trends. Realized value emerges as a key beacon in this landscape, delineating the true worth of cryptocurrencies based on actual coin movements, a departure from conventional market capitalization. The significance of on-chain data lies in its ability to decode the complexities of trading activity, offering insights into price movements and market dynamics that extend beyond mere speculation.
CryptoQuant's role in making blockchain data "ready-to-use" with on-chain metrics underscores the importance of interpreting these vast datasets. By distinguishing and defining various metrics, including second-hand information derived from exchanges, CryptoQuant empowers investors with valuable insights that can profoundly impact trading decisions. As on-chain analysis progresses, it becomes an evolving framework for cryptocurrency valuation, providing traders with a competitive edge in understanding and navigating the market.