🐋 How whales are found

The fact that blockchain transaction data is publicly available allows it to be used to analyze the behavior of other users on the network. Specifically for onchain analytics.

📑 Onchain analytics is the analytics of data discovered in an open source blockchain. In other words, the dynamics of everything going on behind the scenes of crypto projects.

Onchain data allows you to see exactly: who owns what, what transactions are being made, etc. All this information is stored in blocks or transaction records.

📘 Examples of onchain analysis metrics:

1️⃣ Transaction volume. A metric that measures the total number of transactions that have occurred on a blockchain. Used to assess the level of activity on the network.

2️⃣ Smart money analysis (behavior of large players). Venture capital funds or whales can play the role of a major player. Due to their large amounts of funds, they are able to influence the price of an asset. Also, to some extent, they can foresee future trends and narratives in the market.

3️⃣ Number of active addresses / users. This metric shows the number of addresses that have made at least one transaction within a certain time. If the number of active addresses is high, it indicates that the project has a strong user base.

Services for on-chain analytics:

• Nansen

• Glassnode

• Dune

• Token Terminal

• DefiLlama

❕ I advise you to familiarize yourself with and study these services. It will definitely be useful.

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