Understanding On-Chain Analysis: A Guide for Investors

What is On-Chain Analysis?

On-chain analysis is a method used to evaluate the blockchain data. Investors use it to make informed decisions. This data is public and can be accessed by anyone.

Unlike traditional financial analysis, on-chain analysis focuses on metrics like transaction volume and wallet addresses. It helps investors understand market trends and behaviors.

, investors can gauge whether the market is bullish or bearish.

Additionally, on-chain analysis can help in spotting potential fraud or scams. Unusual activity can be a red flag.

Active addresses refer to the number of unique addresses that participate in transactions. More active addresses suggest a vibrant and engaged community.