On-Chain Metrics Analysis

When to use this skill

Use when the user asks about:

• On-chain activity for a specific blockchain or token
• Network health and usage trends
• Interpreting on-chain data for investment decisions
• Comparing blockchains by activity metrics
• Detecting accumulation or distribution phases via on-chain signals

Analysis Framework

1. Network Activity Metrics

Assess overall network health:

• Daily active addresses: Unique addresses transacting — trend over 7d, 30d, 90d
• New addresses: Rate of new wallet creation — proxy for user adoption
• Transaction count: Daily transactions and trend; distinguish between value transfers and contract calls
• Transaction volume (USD): Total value moved on-chain
• Average transaction size: Large increases may indicate institutional activity
• Network fees: Total fees paid — reflects organic demand for blockspace

2. Token-Specific Metrics

For individual tokens:

• Holder count: Total unique holders and growth rate
• Holder distribution: Gini coefficient or top-10 holder concentration percentage
• Transfer volume: Token-specific transfer volume and frequency
• Exchange balance: Percentage of supply held on exchanges — declining = accumulation
• Dormancy flow: Ratio of market cap to annualized dormancy — high values suggest older coins moving (potential distribution)
• Velocity: How frequently tokens change hands — high velocity can indicate speculative activity

3. Whale and Smart Money Analysis

Track large wallet behavior:

• Whale wallet threshold: Define what constitutes a "whale" for this token (top 0.1% holders)
• Accumulation signals: Whales moving tokens off exchanges to cold wallets
• Distribution signals: Whales moving tokens to exchanges (potential sell prep)
• Smart money wallets: Track wallets with historical track record of profitable early entries
• Large transaction count: Number of transactions above $100K in 24h

4. DeFi-Specific Metrics (if applicable)

For DeFi protocols:

• Total Value Locked (TVL): Current and trend
• TVL/Market Cap ratio: Below 1.0 may signal undervaluation
• Protocol revenue: Trading fees, interest, liquidation revenue
• Revenue to token holders: What percentage of revenue accrues to token value?
• User count: Unique addresses interacting with the protocol
• Retention: What percentage of users return after 7d, 30d?

5. Supply Dynamics

Analyze supply-side factors:

• Circulating supply vs total supply: Percentage in circulation
• Staking rate: What percentage of supply is staked? Higher = less sell pressure
• Locked in DeFi: Supply locked in LP, lending, or vaults
• Supply on exchanges: Declining exchange supply historically correlates with price appreciation
• Realized cap vs market cap: MVRV ratio — above 3.0 historically overheated for BTC

6. Network Comparison Table

When comparing blockchains:

Metric	Chain A	Chain B	Chain C
Daily active addresses
Daily transactions
Avg. tx fee
TVL
Revenue (30d)
Developer count

7. Output Format

• Network/Token: Name and chain
• Activity trend: Growing / Stable / Declining
• Key signal: The single most important on-chain insight
• Accumulation/Distribution: Phase assessment with supporting data
• Health score: Healthy / Neutral / Concerning
• Notable observations: 2-3 specific data points that stand out
• Data sources: Which dashboards or APIs the data is referenced from
• Actionable takeaway: What this data suggests about price or adoption direction