On-chain data is one of the most important features of blockchain. It shows how actual transactions occur, by whom, and how to avoid the artificial hype. If you're interested in crypto or DeFi, getting a grasp of on-chain data is key.
1️⃣ What is On-chain Data?
On-chain data refers to all the information that is openly recorded on the blockchain.
Examples are transactions, wallet balances, and token movements.
Simple analogy: as a bank statement reflects your account activity, so the blockchain's public ledger reflects all the activity in it in real time.
Uses of on-chain data:
Understand the MarketWhale activity trackingDistinguish real activity from fake hype
2️⃣ What is transparency?
Transparency means nothing is hidden.
On Blockchain:
All transactions are publicAny person can access them through an explorerCompanies cannot obscure numbers
Example:
Bank: Transactions are only visible to the bank and account holder.
Blockchain: The whole world can see them.
That openness is why blockchain is considered to be transparent.
3️⃣ Real Activity vs Fake Hype
Real Activity:
Real people are transactingWallets are shifting fundsTokens are utilized in DeFi applications.
Indicators:
Transactions are on the increase daily.New wallets are interacting.
Fake Hype:
Loud social media buzzInfluencers promote"Next 100x" claims
Reality check:
Blockchain activity is lowWallets are currently inactive.The project may look strong on the surface, but on-chain data shows the true story.
4️⃣ WHAT ARE WHALES?
Whales are wallets holding large amounts of crypto.
Example: wallets containing millions of dollars in tokens.
On-chain data helps in tracking:
Whether whales are buying or sellingFunds Moving to Exchanges ~ Possible Sell Signals
5️⃣ On-chain data can be viewed in:
Check Blockchain explorers:
Transactions tabToken transfersToken holders
Transparency proof:
No account is required for viewing data: data can be explored by anyone. How to spot real activity: Daily transactions happening New wallets interacting
Tokens transferring How to Spot Fake Hype:
Much social media noise Influencer Promotions The explorer shows almost no transactions
6️⃣ Quick Summary Blockchain: A public digital ledger On-chain data: Everything recorded on-chain.
Transparency means that everyone can see all the information.Real activity means real use and transactions.Fake hype means that noise without real information
In conclusion, To be successful in crypto or DeFi, you need to know how to read on-chain data. It lets you actually see the real market activity, track whales and steer clear of fake hype.
Pro tip: practice with Etherscan or BscScan in order to explore real transactions & get a feel for genuine on-chain activity.
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