On Chain Analysis Tools and a 20-Minute Weekly Routine
Lesson 10 of 10 · Intermediate
Layer one: explorers, the raw source of truth
Every analytics tool is ultimately built from the same data you can see in a block explorer. An explorer is free and adds no interpretation, which is why it is the best place to check claims:
- For Bitcoin: explorers such as mempool.space or Blockchair show inputs, outputs, fees and mempool status.
- For Ethereum: Etherscan shows transactions, token transfers, contract events and some public labels.
- For Tron: Tronscan plays the same role for the network that holds a large share of Tether.
The analytical use of an explorer is to find the real transaction behind any "spike" in a chart. How many transactions were there? From where to where? Does the destination address have a history or is it new? These few questions rule out many wrong narratives right away.
Layer two: query-driven dashboards and aggregate data
- Dune: a platform where users write SQL queries over blockchain data and build dashboards. Its strength is transparency: you can read the query logic. Its weakness is that dashboard quality varies; some are abandoned, some carry old labels and some contain hidden assumptions. Before trusting one, check the date of its last update and the query logic.
- DefiLlama: free aggregate data on value locked in DeFi, stablecoin supply by chain and protocol revenue. It is a good starting point for the stablecoin flow lesson.
- ETF flow data: sites such as Farside tabulate the daily flows of the funds.
Layer three: metric and label providers
| Tool | Strength | Caution |
| Glassnode | Precise definitions of indicators such as SOPR, MVRV, realized cap and cohorts; research reports | Many advanced indicators and finer time resolution are in paid tiers; thresholds are less often publicly recalibrated for the ETF era |
| CryptoQuant | Clear pages for exchange netflow, stablecoin flow, SSR and miner data | Default interpretations are sometimes formulaic ("inflow means bearish"); judge the custody effect yourself |
| Arkham | Entity labelling, wallet tracking and alerts | Labels are not always right; treat them as probabilities and compare with another source |
In general, the free tiers of these tools are enough for learning and a weekly routine, provided you know how each indicator is built. Paying for an indicator whose definition you cannot explain usually gives you more charts, not more understanding.
Also read each service's terms of use; some services restrict users from certain jurisdictions, and this course does not teach ways around such restrictions.
A 20-minute weekly routine
This checklist is designed for once a week, because on-chain data is slow and daily looking mostly sees noise:
- Minutes 0 to 4, overall state: MVRV and the distance of price from the realized price of the whole market and of short-term holders. Is it larger or smaller than last week?
- Minutes 4 to 8, holder behaviour: the 7-day average of SOPR (ideally STH and LTH separately) and the change in LTH supply.
- Minutes 8 to 12, flows: weekly exchange netflow, the change in stablecoin supply and weekly net ETF flows.
- Minutes 12 to 16, anomaly check: find the biggest spike of the week on each chart and open the transaction behind it in an explorer. Was it an internal move or real behaviour?
- Minutes 16 to 20, notes: write in three sentences what the overall picture is, where you are confident and where it is ambiguous. Write one hypothesis for next week and check next week whether it was right.
This routine produces no trading decision; its purpose is to build a contextual picture within which your other decisions are made.
A five-minute check of an on-chain claim
Suppose a social media post says "whales sent 20,000 bitcoin to exchanges yesterday" (a hypothetical claim). Before you believe or share it:
- Source: which provider did the number come from, and is the original chart available?
- Concentration: in how many transactions did this amount move? One or two huge transfers look more like an internal move.
- Destination: does the destination address carry an exchange label? Does it have the same label in another tool?
- Second source: does another provider show the same spike or not?
- Market: in the following hours, did volume and aggressive selling on that exchange change meaningfully?
If you cannot get a clear answer to most of these questions, treat the claim as unconfirmed.
Keep a notebook, and stay safe when using tools
- Keep a notebook: record the date, indicator values and your interpretation. Providers sometimes revise past data, and only your own notes tell you what changed.
- Avoid overfitting: if you look at twenty indicators, one will always agree with your view. Keep a fixed list of a few indicators and do not change it without reason.
- Do not connect a wallet: analytics tools need no wallet connection or transaction signature to read data. Any site that asks for a connection or signature just to "show data" is suspect.
- Do not copy addresses: never take a deposit address from explorer history or from alerts.
Common mistakes
- Buying a paid subscription before understanding the definitions of the basic indicators.
- Trusting Dune dashboards without checking the update date and query logic.
- Looking daily at slow indicators and reacting to noise.
- Piling up dozens of indicators until one agrees with your earlier view.
- Connecting a wallet or signing a transaction on sites that claim to offer on-chain data.
What do volume and data say here?
An on-chain routine is complete when it connects to market data. A practical suggestion for the end of the weekly routine:
- Alongside the on-chain notes, look at the weekly bitcoin volume profile on a liquid exchange or on CME futures: where was the week's value built?
- Review funding and open interest to know how much leverage sits beside the on-chain picture.
- If an important level, such as the realized price of short-term holders, is close to a high-volume area of the profile, mark it as a contextual zone and watch CVD behaviour there.
And always include one step of personal verification: confirm or refute at least one claim from this week yourself in an explorer.
📊 See real gold futures volume behind these ideas: free order flow course · today's gold volume map
Frequently asked questions
What is the best on-chain analysis site?
There is no single best; each tool suits a job. Explorers are for raw checking, Dune and DefiLlama for transparent aggregate data, and Glassnode, CryptoQuant and Arkham for indicators and labels.
Are the free versions of on-chain tools enough?
For learning and a weekly routine, usually yes. Paid tiers give finer time resolution and more indicators, but add little value without understanding the definitions.
How often should I check on-chain data?
Once a week is enough for most users, because this data moves slowly and looking daily mostly shows noise.
Education only, not a recommendation to buy or sell; we never give signals. Price examples are illustrative. Test any method on a demo account first, with strict risk management.