Best On-Chain Analysis Tools: How to Use Nansen and Dune
Android users can download APK directly without VPN.
On-chain analysis means gaining market insights by interpreting publicly available data on the blockchain. Unlike traditional finance, which relies on corporate earnings reports and macroeconomic data, nearly all transaction data in the crypto market is transparent and public. On-chain analysis tools transform this raw data into actionable investment signals. This guide systematically introduces the features and usage of today's leading on-chain analysis tools.
1. On-Chain Analysis Basics
1.1 What Is On-Chain Analysis?
On-chain analysis (On-Chain Analysis) refers to the interpretation and analysis of transaction data recorded on the blockchain. Because of blockchain's transparency, the following data is all publicly accessible:
- The sender, receiver, and amount of every transaction
- The balance and transaction history of every address
- All interaction records with smart contracts
- Changes in TVL (Total Value Locked) for DeFi protocols
- Token circulation and distribution
1.2 Core Dimensions of On-Chain Analysis
| Dimension | What Is Analyzed | Applications |
|---|---|---|
| Address behavior | Whale buying/selling, exchange inflows/outflows | Gauge market sentiment |
| Network activity | Active addresses, transaction volume | Assess network health |
| Token distribution | Concentration, holding duration | Analyze chip structure |
| DeFi data | TVL, lending rates, liquidity | Evaluate DeFi ecosystem |
| Miners/Validators | Miner revenue, hash rate distribution | Analyze network security |
1.3 On-Chain Analysis vs. Technical Analysis
| Comparison | On-Chain Analysis | Technical Analysis |
|---|---|---|
| Data source | Actual on-chain transactions | Price and volume charts |
| Subject of analysis | Fund flows, holding behavior | Price patterns and indicators |
| Time horizon | Tends toward medium-to-long term | Short, medium, and long term |
| Applicable to | Crypto only | All financial markets |
| Unique value | See where money actually moves | Identify price patterns |
2. Leading On-Chain Analysis Tools
2.1 Nansen
Positioning: A professional-grade on-chain analysis platform best known for Smart Money tracking.
Core features:
- Smart Money labels: Nansen tags millions of addresses (such as "Smart Money," "Funds," "Exchanges," etc.) to identify the movements of informed money
- Token God Mode: A comprehensive token analysis dashboard including holdings distribution, Smart Money position changes, and exchange inflows/outflows
- NFT analytics: NFT market data, blue-chip NFT tracking, Smart Money NFT purchases
- Real-time alerts: Instant notifications for large transactions and Smart Money activity
Key modules:
| Module | Function | Best For |
|---|---|---|
| Portfolio | Address tracking and analysis | Monitoring specific addresses |
| Token Research | In-depth token analysis | Assessing token fundamentals |
| Smart Money | Smart money activity | Tracking whale movements |
| NFT Paradise | NFT data analytics | NFT investment research |
| Chain Overview | Per-chain summary data | Multi-chain ecosystem comparison |
Pricing: Nansen is a paid tool; the basic plan is approximately $150/month, with higher tiers available. Some basic features are free.
Getting started:
- Register a free account to try basic features
- Focus on the "Smart Money" module
- Use Token God Mode to research tokens of interest
- Set up transaction alerts for key addresses
2.2 Dune Analytics
Positioning: A community-driven on-chain data analysis platform, often called the SQL database of blockchains.
Core concept: Dune stores blockchain data in a database, allowing users to write custom analysis dashboards using SQL queries.
Core features:
- Custom queries: Write any on-chain data query using SQL
- Dashboards: Create and share data visualization panels
- Community contributions: Thousands of publicly shared dashboards created by the community
- Multi-chain support: Supports Ethereum, BSC, Polygon, Solana, Arbitrum, and more
Popular dashboards:
| Dashboard | Content | Creator |
|---|---|---|
| DEX Metrics | Trading volume and users across DEXes | @hagaetc |
| Ethereum Overview | Key Ethereum network metrics | @hildobby |
| Layer 2 Comparison | Comparative L2 data | Community |
| Stablecoin Dashboard | Stablecoin market data | @steakhouse |
| NFT Market Overview | NFT market summary | Community |
How to use (no coding required):
- Visit
dune.com - Search for topics of interest in the search bar (e.g., "Uniswap," "Bridge")
- Browse community-created dashboards
- View data charts and analysis
How to use (with SQL knowledge):
- Register an account
- Create a new Query
- Write a SQL query
- Visualize the results
- Assemble into a Dashboard
Pricing: Basic features are free; paid plans offer faster query speeds and more executions.
2.3 Glassnode
Positioning: A professional on-chain metrics platform focused on Bitcoin and Ethereum.
Core features:
- On-chain metrics: 200+ on-chain analysis indicators
- Market indicators: Price, volume, and other market data
- Miner data: Hash rate, miner revenue, miner balances
- Supply analysis: Circulating supply, active supply, long-term holders, etc.
- Workbench: Custom indicator combinations and visualizations
Key metrics:
| Metric | Meaning | Investment Reference |
|---|---|---|
| NUPL | Net Unrealized Profit/Loss | Judge whether market is overheated or oversold |
| SOPR | Spent Output Profit Ratio | Judge whether holders are selling at a profit |
| MVRV | Market Value / Realized Value | Assess overvaluation or undervaluation |
| Active Addresses | Count of active addresses | Evaluate network usage |
| Exchange Flow | Exchange fund flows | Judge buying/selling pressure |
| LTH/STH Supply | Long/short-term holder supply | Analyze chip structure |
Pricing: Some indicators are free; full data requires a paid subscription (starting at $39/month).
2.4 Arkham Intelligence
Positioning: An on-chain intelligence and address de-anonymization platform.
Core features:
- Address labels: Links on-chain addresses to real-world entities
- Transaction tracking: Visualized fund flow diagrams
- Real-time monitoring: On-chain activity of whales and institutions
- Intel Exchange: An on-chain intelligence trading marketplace
Standout features:
- High-accuracy address labels (identifying exchanges, funds, project teams, etc.)
- Intuitive fund flow visualization
- Real-time alert system
2.5 Other Tools
| Tool | Highlights | Price |
|---|---|---|
| Messari | Research reports + data | Paid |
| Token Terminal | Protocol revenue and financial data | Partially free |
| Santiment | Social sentiment + on-chain data | Partially free |
| IntoTheBlock | AI-powered on-chain analysis | Partially free |
| Footprint Analytics | Visual on-chain analysis | Free |
| DefiLlama | DeFi protocol TVL data | Free |
3. Interpreting Key On-Chain Metrics
3.1 Exchange Inflows and Outflows
Exchange inflows: Tokens moving from personal wallets to exchanges typically signal selling intent. Exchange outflows: Tokens moving from exchanges to personal wallets typically signal long-term holding intent.
Analysis logic:
- Large BTC inflows to exchanges → potential selling pressure increasing
- Large BTC outflows from exchanges → holders are accumulating
- Sustained decline in exchange balance → supply decreasing; bullish signal
- Sustained increase in exchange balance → supply increasing; bearish signal
3.2 Whale Activity
Definition: Addresses holding large amounts of cryptocurrency (e.g., addresses holding 1,000+ BTC).
Key monitoring points:
- Whale transfers to exchanges → may be preparing to sell
- Whale withdrawals from exchanges → may be holding long-term
- New whale addresses appearing → large purchase signal
- Whale addresses disappearing → large sell signal
3.3 MVRV Ratio
Formula: MVRV = Market Cap / Realized Cap
- MVRV > 3.5: Market may be overheated; historically associated with top zones
- MVRV < 1: Market may be undervalued; historically associated with bottom zones
- MVRV ≈ 1: Market is near "fair value"
3.4 Holding Duration Analysis
HODL Waves: Categorizes all UTXOs (Unspent Transaction Outputs) by their last movement time, showing the distribution of Bitcoin by how long it has been held.
- Increasing proportion held long-term (>1 year) → Bullish (supply is locked up)
- Increasing short-term holdings → Increased volatility
- Very old UTXOs moving → Early investors may be selling
4. Practical Analysis Scenarios
4.1 Evaluating a New Project
Use on-chain analysis to assess a new token or project:
- Dune: Check the project's user growth, trading volume, and other core metrics
- Nansen: Check whether Smart Money holds the token
- Etherscan: Check whether the token's holder distribution is healthy
- DefiLlama: Check the protocol's TVL and growth trends
- Token Terminal: Check the protocol's revenue and valuation ratios
4.2 Monitoring Portfolio-Related Signals
Set up monitoring for key indicators:
- Changes in BTC/ETH exchange balances
- Smart Money buying and selling activity
- DeFi protocol TVL changes
- Stablecoin market cap changes (an indicator of capital inflows to the market)
4.3 Identifying Market Cycles
On-chain metrics help identify the stage of the market cycle:
| Cycle Stage | On-Chain Characteristics |
|---|---|
| Bottom accumulation | MVRV < 1; long-term holders increasing; outflows from exchanges |
| Early uptrend | Active addresses increasing; new participants entering |
| Overheating | MVRV >> 1; short-term holders selling at a profit |
| Top distribution | Large inflows to exchanges; long-term holders decreasing |
| Correction/decline | Panic selling; short-term holders selling at a loss |
5. Limitations of On-Chain Analysis
5.1 Data That Cannot Be Captured
- Centralized exchange internal transactions: Trades inside CEXes do not appear on-chain
- OTC trades: Over-the-counter transactions may not be reflected on-chain
- Cross-chain activity: Tracking fund flows between different chains is difficult
- Privacy coin transactions: Transactions on networks like Monero cannot be traced
5.2 Analysis Pitfalls
- Over-reading a single metric: No single metric gives the complete picture
- Lag: On-chain data reflects events that have already occurred
- False signals: Whales may intentionally create on-chain movements to mislead analysts
- Correlation is not causation: Changes in on-chain data do not necessarily drive price changes
6. Getting Started
6.1 Beginner Learning Path
- Stage 1: Learn to use block explorers (Etherscan, BscScan)
- Stage 2: Understand the meaning of basic on-chain metrics (MVRV, exchange inflows/outflows, etc.)
- Stage 3: Track BTC/ETH using Glassnode's free indicators
- Stage 4: Browse community dashboards on Dune to understand DeFi data
- Stage 5: Try professional tools like Nansen to track Smart Money
6.2 Free Resource Recommendations
| Resource | Type | Best for |
|---|---|---|
| Glassnode Academy | Tutorials | Learning metrics |
| Dune Dashboards | Community panels | Exploring data |
| DefiLlama | Free tool | DeFi analysis |
| CryptoQuant | Partially free | BTC analysis |
| Our Network Newsletter | Weekly newsletter | On-chain insights |
Summary
On-chain analysis is a unique advantage for crypto investors — in traditional finance, you simply cannot see the details of every transaction. Dune Analytics is the best free tool for getting started with on-chain data exploration; Glassnode is ideal for learning and using classic on-chain metrics; and Nansen is for advanced users who need to track Smart Money.
The most important principle: On-chain analysis is a decision-support tool, not a trading signal. Combining on-chain data with other analysis methods (fundamental analysis, technical analysis, and macro context) leads to more well-rounded investment decisions.
Android users can download APK directly without VPN.
Android users can download APK directly without VPN.