Dear Unbanked Nation,
Being able to analyze on-chain data is a powerful skill for the next decade.
Use it to gain important insights about protocols, tokens and the crypto-economy.
Since so few actually do the work to look at the data…
On-chain data is alpha.
While analyzing on-chain data used to be difficult and opaque, today it is easier than ever. There are a number of great tools available to us, especially on Ethereum.
Etherscan has built a suite of functions that are invaluable for analyzing ETH transactions.
Analytics dashboards like Nansen are tailored to identify the most alpha-driven insights, while Dune Analytics allows analysts to build their own unique dashboards for whatever they need.
We also have tools like Token Terminal which was a key tool for Bankless to identify the rise in DeFi.
Here is your guide on how to use chain data to find the gems.
– RSA
A blockchain is a fully public record keeping system for 21st century transactions.
The information blockchain store is known as “on-chain data.” Home to most DeFi and NFT activity, Ethereum has a growing abundance of on-chain data that people can openly inspect.
Analyzing this crypto-centric data is a great way to gain deeper insights into contemporary or historical blockchain events. For example, investors use these analytics to find new alpha, NFT archaeologists use them to find long-lost collections, and civilians use them to hold scammers to account.
Good stuff right?
Well, you can do the same kind of things in no time! First, though, you need the right tools for the job at hand. As a result, this Bankless tactic will guide you through some of the best resources available today when it comes to analyzing on-chain data and how to gain important insights from it.
Objective: How to analyze on-chain data Skill: Intermediate Effort: Varies ROI: Increased competence in one of crypto’s most useful skills
The purpose of on-chain analysis depends on the analyst. An investor considering acquiring a DeFi token can analyze data related to the health of the underlying dapp. Are key metrics trending upward over time? Or is the use gradually decreasing?
Yet performing on-chain analytics need not be complicated or involved. It can be as simple as reviewing your previous one 
Ethereum L1Ethereum is a global platform for decentralized applications and finance.View profile” class=”stubHighlight”>Ethereum transaction to see if it’s completed or pending, or check to see what NFTs your friends have collected lately.
Whatever your goal, the tools below greatly streamline the process of on-chain analysis and are the best resources for novice and veteran cryptoanalysts alike.
1. Etherscan (and its contemporaries)
The 101
Etherscan is a block explorer, a special browser platform to review and analyze all the data stored on Ethereum.
The service allows users to search for and inspect historical information via address (alphanumeric or ENS style), transaction hash, block number, token name, etc.
Etherscan offers additional resources such as an ETH unit converter, a Label Word Cloud (for searching activity by theme, such as “Charity”), a Verify Contract tool, and more.
Keep in mind that other networks, such as Ethereum scaling solutions, have their own custom block explorers. Also check out:
Use Etherscan for on-chain analysis
Etherscan is a foundational resource for any cryptoanalyst because the block explorer makes it easy to analyze all the basic details of an Ethereum transaction. Then you can piece together the bigger picture by looking at transaction flow and understanding it. As such, you’ll want to learn how to “read” transactions on Etherscan if you haven’t already. For example, let’s take a quick look at Ethereum creator Vitalik Buterin’s keynote address. I searched for his public ETC vitalik.eth on Etherscan, which brought me to his address page and recent transactions. In the first transaction visible below, we can see that Buterin sent a test transaction of 0.1 ETH to an address as a precaution before sending a much larger amount, 199.9 ETH, to the same address immediately afterwards.
If we click on the Txn Hash of the test send, we can review all the main details of the transaction, such as its exact timestamp, its transaction fee, the value of ETH at the time of the transaction, and more.
2. Dune analysis
The 101
Use Dune Analytics for on-chain analytics
As a non-developer, using Dune Analytics is simple: identify a project or topic you want to analyze, search for it on the platform, and then inspect any available dashboards as you like! For example, Dune user @dqniellew recently posted ‘ a new one created. Dune Dashboard for tracking information about The Idols, an NFT project whose NFTs are riddled with 
Lido Liquid strikeLido is a decentralized, non-custodial liquid staking solution for Ethereum.View Profile” class=”stubHighlight”>Lido staked ETH (stETH). This dashboard is useful for visualizing the early activity around the collection. If you want to get more advanced with Dune and dig deeper into SQL query strategies, Dune has Analytics put together some excellent tutorials earlier this year:
3. Token Terminal
The 101
Token Terminal is a crypto-economy analytics platform that aggregates and tracks financial data from blockchains and dapps. “Our goal is to provide access to standardized metrics that allow users to easily quantify and compare the performance of different blockchains and decentralized applications,” notes the Token Terminal team. The platform offers a free dashboard where analysts can review projects and networks’ revenue metrics, price-to-sales ratios and more. Token Terminal explains how they define and calculate all their metrics in their documents. The site’s Weekly Winners and Weekly Losers (seen on the right side of the image above) are also useful for tracking momentum trends.
Use Token Terminal for on-chain analysis
Token Terminal can be particularly useful for visualizing the total value locked (TVL) in top dapps across all chains, e.g. Ethereum, alt-L1s, L2s, etc. You can also use the site’s “Markets” section to explore activity across specific categories, such as lending protocols in general, or from specific projects, such as Aave. Users who upgrade to Token Terminal’s Pro plan can create and download their own cards.
4. Nansen
The 101
As Nansen data journalist Martin Lee recently explained: “Ethereum ETL is an open source project that allows users to convert blockchain data into convenient formats such as CSV. Nansen, whose core team members are the main contributors to Ethereum ETL, uses it to transform chain data and displays the data in easy-to-digest dashboards.” Nansen also uses a wallet tagging system that makes it very easy to analyze transaction flow. For example, the legendary NFT aggregator Pranksy has his main wallet depicted as below. (NFT project analysis), Smart Token Holdings (tracks changes in major wallets ‘s ownership na), and more.However, Nansen also has a free trial offer and a series of public dashboards that you can visit.
Use Nansen for on-chain analysis
Let’s say you’re thinking about investing in the LOOKS token from the LooksRare NFT market, but you want to see how its stats hold up. 
OpenSea NFTsOpenSea is a leading marketplace for buying and selling NFTs.View profile” class=”stubHighlight”>OpenSea recently before making a final decision. You can go to Nansen’s public LooksRare dashboard and compare the two marketplaces on 24-hour users, daily active users, etc. In the image above you can see LooksRare’s DAUs decreased in February 2022, so this may affect your choice.For more ideas on how to use Nansen, I recommend reading the aforementioned Martin Lee’s “Blockchain Analytics” piece.
5. Context
The 101
Context is a real-time feed to track notable NFT activity. You can use the site to follow events by pre-made categories such as CryptoPunk holders, FWB members or notable crypto artists. Plus, you can connect your wallet to start personalizing your feed by following specific accounts that matter to you.
Use context for on-chain analysis
Maybe you’ve found a person or two on Twitter who always seem to find the next big NFT project before everyone else. See if they display a public ENS or an Ethereum address anywhere. If so, go to Context and add the address to the accounts you follow. When that person or people then take on new projects, you will be able to track and react to the events in your real-time Context Stream!
If you haven’t already, start using the tools described above regularly and get a feel for it.
They are powerful on their own and can help you produce actionable insights individually, but when you use them in tandem, your ability to understand and act on on-chain data increases exponentially.
As the crypto-economy grows in importance in the world, it will also be increasingly useful to analyze on-chain data in even basic ways. Learning these skills and tools now will give you a head start before the rest of the world really starts to catch up.
Action steps
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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