nirholas 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