CryptoDLY · Education Series 2
Volume 7
On-Chain Analysis —
Reading the Blockchain
Price is what you see. On-chain is what is actually happening.
Chapters in This Volume
1What On-Chain Data Actually Is2MVRV Ratio: Value vs Realised Value3SOPR: Spent Output Profit Ratio4Exchange Flows: Follow the Money5Whale Wallets & Large Holder Behaviour6Long-Term vs Short-Term Holder Analysis7NVT & NUPL: Network Value Metrics8Realised Price & Cost Basis Analysis9Building Your Weekly On-Chain Routine10On-Chain for Altcoins & Ethereum
What On-Chain Data Actually Is
The blockchain is a permanent public record. Learn to read it.
Most traders read charts and news. The traders who get ahead read the blockchain — the one data source that shows what is actually happening with real capital, not opinions about it.
| Data Type | What It Shows | Can It Be Faked? |
|---|---|---|
| Wallet balances | Exactly how much each address holds | No — visible on public ledger |
| Transaction history | Every coin movement, timestamped | No — immutable once confirmed |
| Exchange reserves | Total BTC/ETH held on exchanges | No — trackable via known wallets |
| Miner behaviour | When miners sell vs accumulate | No — miner wallets publicly traceable |
On-Chain
Most honest — immutable, public, real capital movements. Cannot be faked or manipulated.
Price Action
Honest but lagging — reflects what has already happened. Can be briefly distorted.
Sentiment
Least reliable — entirely emotional, easily manipulated. Use only at extremes.
News
Mostly noise — already priced in within minutes. Useful only as a contrarian signal at extremes.
Key Takeaway
- On-chain data cannot be faked — the most honest signal in crypto.
- Start with four metrics: MVRV, exchange flows, LTH supply, realised price. Master these first.
- Glassnode and CryptoQuant free tiers provide enough data for a powerful weekly routine.
- You do not need to be a data scientist — you need to know what each metric measures.
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Continue On-Chain Analysis: Reading the Blockchain
Still to come
- ◆MVRV, SOPR, NVT and NUPL explained
- ◆Exchange flows and whale wallet behaviour
- ◆Your weekly on-chain routine
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