Health, Wealth, and Happiness |
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“The most important quality for an investor is temperament, not intellect.”
— Warren Buffett |
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In today's issue: Blockchain analysis is like having X-ray vision.
You can peer directly into crypto projects to find out which are growing, identify those with increasing revenue, and spot hidden gems.
Finding the best sources for this data can help investors make more informed decisions, which is why we're highlighting the Top Blockchain Analytics Toolsfor Investors in today's issue.
To invest intelligently in crypto markets, these analytics platforms can deliver the details. They'll show you TVL, trading volumes, liquidity, yield farming, market capitalization, protocol governance, and much more.
To read our picks for the top blockchain analytics tools (the ones we use ourselves), read on. |
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| | Must Read Today's most important story for crypto investors. |
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There's been a lot of talk lately about de-dollarization, or the move by some countries to replace the US dollar as the world's reserve currency. We've seen the headlines of China working to replace the dollarwith its own yuan in oil trade with Russia and the Middle East. Recently, Brazil announcedthat the yuan has replaced the euro as its second largest central bank reserve holding.
De-dollarization would impact commodities, forex, global trade, and the entire US economy, but what impact would de-dollarization have on crypto assets? |
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Despite the hype and hyperbole, experts agree that the status of USD as a global reserve currency is safe... for now. Even if the dollar is losing some ground globally, that might not be such a bad thing for the average American.
Considering adding crypto (specifically bitcoin) as a global central bank reserve currency may seem far-fetched now, but the idea has some merit as bitcoin matures and becomes a less volatile asset.
Investor takeaway: Adding bitcoin as a marginal reserve currency (i.e., in addition to other holdings by central banks) would not only legitimize bitcoin as an alternative to gold and other currencies, but central bank buying would increase demand. While this is still purely theoretical, it's another potential reason to consider a long-term investment in bitcoin. |
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Premium Power-Ups Level up your crypto investing game. |
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New NFT Investor Scorecard: Meebits
Imagine having a customized, 3D, eight-bit-styled avatar for using across the metaverse. Now, imagine that avatar is an NFT that grows in value along with your online following.
You might call these avatars "me bits" or just "Meebits."
That's the idea behind Meebits, a collection of 3D NFT characters with randomly-generated traits. They're built for crypto and the metaverse, which are both hot, but are Meebits worth buying as an investment?
Not yet a Premium member? Sign up now for just $10 a month and get instant access to our complete, on-demand library of investor scorecards. Compare Meebits against all the other top NFTs. |
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Top Blockchain Analytics Tools for Investors by Preetam Kaushik |
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Executive Summary: Blockchain analytics tools are web-based software platforms that help investors reduce risk and make informed investment decisions through in-depth analysis, real-time data tracking, and market insights. Here's our list of the best tools... the ones we use ourselves!
Data analytics is at the core of any successful investment strategy. Traditional investors in stocks, securities, and forex markets rely on several data analytics tools to gain critical insights that make the difference between spectacular ROI and catastrophic losses.
Now, investor analytics tools have come to blockchain. Here's our editor-curated list of the most popular blockchain analytics platforms today. While most of them offer a decent array of free analytics tools, some in-depth analytics and real-time tracking requires a subscription.
There is no such thing as a best crypto analytics platform, as analytics platforms usually specialize in certain tools or niches. For crypto investors, using different tools for different use cases can lead to much better investment decisions.
Here's our list of top analytics tools based on longevity, traffic, community, and prices: |
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What are Blockchain Analytics Tools?
Blockchain analytics tools are software platforms that allow investors to gather and analyze a wide array of data and metrics from blockchain networks. You can use these tools to analyze fundamentals about businesses, see the historical performances of tokens, and compare metrics between similar projects.
Blockchain analytics tools serve vital purposes in crypto investing, empowering individual investors and institutions to make informed decisions by providing deep insights into various blockchain tokens, NFTs, and DeFi platforms.
The vast majority of blockchain analytics tools are available as web-based platforms and mobile apps. They usually offer services across multiple tiers: a basic, free service with limited data visibility and analytics options, and a paid subscription-based service that unlocks advanced data analytics capabilities.
The Top Blockchain Analytics Tools
In the modern blockchain ecosystem, there's no shortage of blockchain analytics tools. Investors, particularly newcomers, often face an embarrassment of riches. This shortlist of the most popular analytics tools will give you a concise overview of what we like about each tool (and how we use them ourselves). |
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1. CoinMarketCap Launched in 2013 by Brandon Chez (a software engineer in the tech industry), CoinMarketCap quickly evolved into one of the most popular websites for blockchain enthusiasts to keep track of crypto prices and market capitalizations.
Acquired by Binance in 2020, CoinMarketCap is the leading provider of blockchain data analytics tools. The website tracks real-time data on over 10,000 cryptocurrencies with price tracking, market cap rankings, and historical data. There's also a news section that keeps track of the latest developments in the crypto ecosystem. |
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Through its API service, the platform provides direct access to market data in a highly structured and programmed format. While this service is available for free, professional investors often rely on the paid "pro" subscription plan which provides more advanced features, key metrics, tools, and unrestricted access to real-time data. |
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2. DappRadar
As the name suggests, DappRadar is an online source of data and insights into the world of DeFi and blockchain apps. Based in Vilnius, Lithuania, the platform was launched in 2018 by a small team of Lithuanian blockchain professionals. DappRadar shares some DNA with DefiLlama as they focus on decentralized finance. However, DappRadar gives more priority to the app side of the ecosystem. It has rankings of the most popular blockchain apps with metrics like daily volumes, daily active wallets, and balances in smart contract apps. |
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There are separate analytics and visualization tools for NFTs and apps across various sectors. Subscribers can use an advanced API to gain real-time visibility and tracking capabilities across multiple blockchains covering dapps, NFTs, and gaming. |
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3. DefiLlama
Decentralized Finance (DeFi) protocols rose to prominence in the blockchain space in early 2020. DeFiLlama was created by a group of developers and enthusiasts actively involved in the burgeoning scene of decentralized finance.
The platform provides DeFi users and investors with dedicated analytics tools to better navigate this rapidly evolving market. The website’s main feature is a ranking page for DeFi protocols that's sortable by various criteria. |
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Metrics include total value locked (TVL), liquidity, market performance, daily volume, and more. The charts facilitate quick and easy comparisons between various protocols.
A highly useful feature for potential investors is the yield farming calculator tool, which you can use to estimate your up-to-the-minute potential ROI from different DeFi protocols. |
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4. Glassnode
Glassnode is a highly popular, on-chain data analytics platform among crypto investors, developers, and traders. The site was launched in 2018 by a group of industry professionals with deep domain experience in blockchain. For more casual investors and crypto newcomers, the platform offers a free version of its Glassnode Studio. Here, you will find a decent selection of basic metrics and data analytics tools to look at daily on-chain transactions, network activity, active addresses, and more. |
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However, a subscription is necessary if you want more serious analytics tools with access to real-time data on cryptocurrencies and DeFi projects, plus a wider array of on-chain metrics for deeper insights. |
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5. Messari
Ryan Selkis, the founder of the crypto news site CoinDesk, is the brains behind Messari.io. The platform was launched in 2018 to provide high-quality research data on popular blockchains and crypto projects to investors and institutions.
Apart from providing data analytics tools for tracking and visualizing blockchain data, Messari.io has an in-house team of blockchain data analysts. Their jobs involve publishing in-depth market research reports and providing insights into various aspects of blockchain technology. |
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Users can rely on the platform for market analysis, risk management, and tools that track trading volumes, market cap, and other basic metrics. There's also a community forum where you can collaborate with other users of Messari.io. |
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6. TheBlock
TheBlock is a high-quality news and research platform specializing in the blockchain market space. It was launched in 2018 by journalist and crypto entrepreneur Mike Dudas to create a comprehensive online news and research platform for blockchain investors and developers. In terms of features and services, TheBlock shares some features with both Messari.io and CoinMarketCap. It has the former's focus on research data and reports while retaining the news and current affairs focus pioneered by CoinMarketCap. |
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While many other blockchain data analytics platforms share the common traits of graphs, metrics, and dashboards, TheBlock looks more like an online news and reports platform for cryptocurrency users and investors. |
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7. Dune Analytics
Dune Analytics is a popular data analytics platform that allows users to set up and share their own reports, pulling from live blockchain data. The platform was launched in 2018 by three individuals: data scientist Frederick Haga, software engineer Mats Julian Olsen, and business development expert Simen Øygard. The platform's standout feature is its flexibility and extensibility. Users can create custom dashboards and analytics tools that focus on specific metrics of popular blockchain networks. Dune also offers users an extensive set of pre-built templates that investors can utilize as baselines to develop custom dashboards. |
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Dune’s data analytics tools focus on popular blockchains like Ethereum, Polygon, and BSC. Users can also utilize these tools to look at any network that's not natively supported by Dune. Just connect to the network’s public API or load any available data directly to the Dune platform. |
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8. AltFins
AltFins is a data analytics platform with a broad approach that looks at everything from on-chain analytics to market trends, trading patterns, and investment research. The platform was launched in 2018 by a team of blockchain technology and finance professionals.
You can get real-time token pricing data, trading patterns, and technical analyses of the top 55 cryptocurrencies in the market. A research hub provides quick access to a wide array of in-depth reports created by the AltFins team. |
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While some of the more advanced features on the platform require subscriptions, AltFins offers a competent array of data analytics and market highlights that are free to visitors. The platform is an excellent source of information for investors who seek data on trading signals, market patterns, and other technical analyses. |
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9. CoinMetrics
Launched in 2017 by a team of blockchain experts and industry insiders, CoinMetrics is cut from the same cloth as Glassnode and Token Terminal. The range of data analytics tools offered for blockchain investors and traders is similar across all three platforms.
Atlas Search is a feature-packed blockchain explorer tool unique to CoinMetrics. Other notable features include network data feeds, crypto market data feeds with both historical and real-time data, asset benchmarks, and risk management tools. |
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While the platform offers an array of free charts, historical blockchain data, and market insights, access to more advanced blockchain analytics and real-time data is limited to paid customers. However, CoinMetrics provides free access to a constant stream of in-depth research reports on its site. |
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10. Delphi Digital
Delphi Digital is a blockchain research and consulting firm launched in 2018 by financial analyst Anil Lulla and crypto expert Tom Shaughnessy. The delphidigital.io platform primarily caters to investors and businesses interested in venturing into blockchain markets. |
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While there are a few free services on the platform like weekly newsletters, podcasts, and blogs, access to premium reports and market insights is locked behind a paywall. Apart from reports and analytics, Delphi Digital offers consultancy services for organizations looking to integrate blockchain technology into their operations. |
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11. Nansen
Nansen was originally launched in 2019 as a data analytics platform with a focus on the Ethereum blockchain. It was founded by blockchain professionals Alex Svavenik and Lars Krogvig. Since its inception, Nansen has expanded to include data and insights on other major blockchains. The platform caters to the data analytics needs of crypto investors, VCs, development teams, and major crypto funds. Although individual investors are welcome to use the platform, Nansen has a greater focus on B2B services and blockchain developers. |
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Apart from portfolio analytics and market sentiment analysis, Nansen focuses heavily on the wallet activity of major blockchains, giving deep insight into the movement of crypto whales and other influential investors. If you want to quickly identify emerging trends, Nansen is a great option. |
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12. Chainalysis
Unlike the other platforms listed so far, Chainalysis doesn't cater to individual investors. The data analytics tools on this platform are geared toward other businesses, banks, and government agencies. Chainalysis was launched in 2014 with a focus on blockchain data analytics and compliance.
The platform's data analytics tools are widely used by government regulators, law enforcement agencies, and financial institutions to keep track of the flow of funds across blockchain networks. This is primarily a paid service for B2B and B2G sectors. It doesn’t have any free offerings aimed at individual investors. |
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Many of its tools are geared toward security, compliance, and consumer protection. These include transaction monitoring for AML/CFT, screening of high-risk users, customer intelligence reports, and dedicated blockchain analytics for Web3. |
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13. Token Terminal
Token Terminal was launched in 2018 by two venture capitalists (Joonas Saloranta and Dmitriy Berenzon) with a focus on delivering more data-driven insights into major blockchain projects.
Token Terminal is great for showing “tokenomics” (the economics behind a token), as well as its rich collection of crypto financial reports. See our companion piece on How to Read Crypto Financial Reports, which is based on this feature of Token Terminal. |
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For investors seeking longer-term insights into blockchain projects, with a wide range of metrics like trading volumes, market caps, TVL, transaction volumes, assets staked, active developers, active users, revenue shares, competitive landscapes, financial statements, and more, Token Terminal is a solid choice. |
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How To Use Crypto Analytics Tools
Intelligent investing has two parts: quantitative and qualitative (or numbers and judgment).
While qualitative analysis can be done using our industry-leading Blockchain Investor Scorecard, you need tools like these to do the quantitative analysis.
In this segment, we will summarize how you can best utilize these crypto analytics tools. We will also identify the best platforms that provide these tools.
Market Analysis
In the blockchain space, market analysis involves looking at things like token trading volumes, price movements, and changes in market capitalization.
Insights gained from the market analysis can be used to decide whether a token is undervalued or overvalued. Ultimately, we want to be looking for quality, long-term investments that are undervalued (or "on sale").
Best platform for market analysis: CoinMarketCap
Blockchain Analysis
Instead of looking at price, blockchain analysis involves looking at the data recorded on a blockchain. This gives you a deeper understanding of how specific cryptocurrencies are being used by their holders.
Also called on-chain analytics, it involves looking at transaction volumes, mining rewards, wallet balances, token supplies, and block times. The single most important metric we look for is user growth.
Best platform for blockchain analysis: Token Terminal
Portfolio Management
Blockchain portfolios can include a variety of assets like mined tokens, staked tokens, NFTs, governance tokens, and DeFi investments. Balancing and managing a portfolio requires real-time tracking of all your investments.
Ideally, you shouldn’t be relying on a single platform for your portfolio management needs, especially if you have a highly diversified crypto portfolio. For high-value investments, choosing premium portfolio management services might be a good idea.
Best platforms for portfolio management: Glassnode, Messari
DeFi Analysis
Decentralized finance offers investors dynamic new ways to put their assets to work beyond the traditional concept of HODLing. Since DeFi projects are distinct from regular blockchain networks, you need dedicated data analytics tools.
This involves looking at metrics like TVL, trading volumes, liquidity, yield farming, market capitalizations, and protocol governance. Thankfully, this is easy as the blockchain ecosystem has several platforms dedicated solely to the tracking of DeFi projects.
Best platforms for DeFi analysis: DefiLlama, DappRadar
Risk Management
Blockchain markets are notoriously sensitive to the actions of whales (crypto wallets that hold significant chunks of a token’s supply). Any sudden movements in these wallet addresses can trigger wider ripples in a token's pricing.
Many platforms provide specialized data tracking tools and services to focus exclusively on known whale addresses and large transactions on the blockchain. Real-time alerts from these tools can help you avoid major losses and even identify promising investment options.
Best platforms for risk management: Nansen, CoinMetrics
Investor Takeaway
Investing in blockchain can be risky, but the potential rewards can be great. Intelligent investors will diversify well using strategies like our Blockchain Believers Portfolio.
Within that tiny slice of crypto, we can use both qualitative and quantitative analysis to choose quality, long-term projects. Blockchain analytics tools can help us with the quantitative side.
The crypto industry is growing up. Risk management and informed decision making are possible in blockchain investing, and this is largely due to data analytics tools. |
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| | ICYMI In Case You Missed It |
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With the proposed Stablecoin Act, here's why they matter more than ever.
Our updated list of the most crypto-friendly banking options.
The new tool is a goldmine for investors.
It's not just blockchain buzzword bingo; it's an investment opportunity.
With a link to watch the live congressional hearing. (Premium members) |
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This would be the ultimate crypto tool. |
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Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It's created by John Hargrave, Nick Marinoff, Steve Walters, Anatol Antonovici, Matthew Du, Daniel Joel, and Preetam Kaushik.
Both free and Premium subscribers get content to build them into better investors.
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