# On-Chain Analytics > On chain analytics studies public blockchain data such as addresses, flows and holder behaviour. Learn key metrics like MVRV and SOPR, data tools and their limits. Source: https://learn.tradelabsai.com/crypto/on-chain-analytics/ Track: Crypto · Level: Advanced · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "On-Chain Analytics", https://learn.tradelabsai.com/crypto/on-chain-analytics/ Public blockchains record every transaction in a ledger anyone can read. On chain analytics turns that raw data into insights about who holds coins, how they move, how much profit holders are sitting on and how heavily networks are used. It is a kind of alternative data unique to crypto: in stock markets, you cannot see every share transfer in real time, but in Bitcoin and Ethereum you can. Traders use on chain metrics to gauge market cycles, sentiment and supply and demand, alongside price charts and derivatives data. ## Types of on chain data | Category | Examples | |---|---| | Network activity | Active addresses, transaction counts, fees | | Supply distribution | Holdings by wallet size, long term vs short term holders | | Profitability | Realised price, unrealised profit, SOPR | | Flows | Exchange inflows and outflows, stablecoin movements. See [Wallet and Exchange Flows](https://learn.tradelabsai.com/crypto/wallet-and-exchange-flows/) | | Miner data | Hash rate, miner revenue, miner selling | | DeFi data | Total value locked, lending rates, liquidations | ## Key metrics ### Realised price and MVRV Market value counts every coin at today's price. Realised value counts each coin at the price when it last moved on chain, approximating the average cost basis of holders. ``` realised price = realised value / circulating supply MVRV ratio = market value / realised value ``` **Example: Reading MVRV** Bitcoin trades at $60,000, and its realised price is $40,000. MVRV is 1.5: the average holder has a 50% unrealised gain. Historically, MVRV readings above about 3.5 have coincided with major Bitcoin cycle tops, when holders sat on very large gains and selling pressure rose, and readings below 1 have coincided with bear market bottoms, when the average holder was at a loss. These thresholds come from a small number of cycles and are not guarantees of future behaviour. ### SOPR (spent output profit ratio) SOPR compares the value of coins when spent with their value when acquired. Above 1 means coins moved on average are sold at a profit; below 1, at a loss. In bull markets, SOPR dipping to 1 and bouncing has often marked support; in bear markets, rallies to 1 have often met selling. ### Long term and short term holders Analysts often classify coins unmoved for more than about 155 days as held by long term holders. When long term holders sell into rallies and short term holders accumulate, markets are often late in a bull cycle. ### Network activity Rising active addresses and fees can signal growing usage; falling activity can signal declining interest. These are noisy and can be distorted by spam or batch transactions. ## Data providers Companies such as Glassnode, CryptoQuant, Nansen, Dune and Arkham collect and label blockchain data. Labelling, identifying which addresses belong to exchanges, funds or known entities, is crucial and imperfect. ## Using on chain data in trading - **Cycle analysis:** profitability metrics for long horizon positioning. - **Flow tracking:** large exchange inflows can precede selling. See [Wallet and Exchange Flows](https://learn.tradelabsai.com/crypto/wallet-and-exchange-flows/). - **Whale watching:** tracking large holders' movements. - **Confirmation:** combine with price action, funding and open interest. See [Funding Rates](https://learn.tradelabsai.com/crypto/funding-rates/). ## Limitations - **Attribution errors:** addresses can be mislabelled; one entity can control many addresses. - **Off chain activity:** trades inside exchanges, ETFs and custodians do not appear on chain individually. - **Changing structure:** ETFs and layer 2 networks shift where activity happens, weakening old relationships. - **Small samples:** Bitcoin has had only a few market cycles. - **Overfitting:** many metrics can be tuned to past data. See [Overfitting and Curve Fitting](https://learn.tradelabsai.com/research/overfitting-and-curve-fitting/). ## Frequently asked questions ### What is on chain analysis? The study of public blockchain data, such as transactions, addresses and holdings, to understand market behaviour and sentiment. ### What is MVRV? The ratio of market value to realised value, showing whether holders on average are sitting on gains or losses. ### Is on chain data reliable for trading? It provides unique information, but labelling errors, off chain activity and limited history mean it should be combined with other analysis. Next, track how coins move between wallets and exchanges in [Wallet and Exchange Flows](https://learn.tradelabsai.com/crypto/wallet-and-exchange-flows/). ## Continue learning - Next lesson: [Wallet and Exchange Flows](https://learn.tradelabsai.com/crypto/wallet-and-exchange-flows/) - Previous lesson: [Funding and Basis Arbitrage](https://learn.tradelabsai.com/crypto/funding-and-basis-arbitrage/) - Related: [Funding and Basis Arbitrage](https://learn.tradelabsai.com/crypto/funding-and-basis-arbitrage/): Funding and basis arbitrage buys crypto spot and shorts perps or futures to earn the premium while staying neutral. Learn the mechanics, returns and risks. - Related: [Wallet and Exchange Flows](https://learn.tradelabsai.com/crypto/wallet-and-exchange-flows/): Exchange inflows, outflows, whale wallets and stablecoin flows reveal how crypto is moving. Learn the key flow metrics, how to read them and their pitfalls. - Related: [Blockchain Basics](https://learn.tradelabsai.com/crypto/blockchain-basics/): A blockchain is a shared ledger secured by cryptography and consensus. Learn blocks, hashes, keys, wallets, proof of work and proof of stake, and finality. - Related: [Bitcoin](https://learn.tradelabsai.com/crypto/bitcoin/): Bitcoin is the first and largest cryptocurrency, with a fixed supply of 21 million coins. Learn how it works, halvings, what moves its price and how to trade it. - Related: [Alternative Data Explained](https://learn.tradelabsai.com/alternative-data/alternative-data-explained/): Alternative data is non traditional information like card spending, web traffic and satellite images. Learn the main types, how funds use it and the risks. - Related: [Sentiment Data](https://learn.tradelabsai.com/alternative-data/sentiment-data/): Sentiment data measures how optimistic or fearful investors are. Learn survey, positioning, options and crypto sentiment indicators and how to use them.