The Crypto and DeFi world is booming right now, with new projects popping up daily. Digital assets from NFTs and Metaverse games, to tokens and coins, new trends emerge every single day, making it impossible to track everything.
What is becoming increasingly crucial in finding the most exciting new projects, is tracking what others are buying and selling, and making sure your digital assets are real. As the NFT market grows, it gets more saturated with counterfeit assets. Rug-pulls through fake marketing. This is where on-chain analysis and digital asset discovery tools come in handy.
On-chain analysis tools can offer crucial insights
Digital asset market is battling with scams and fakes, rug pulls are nothing new in the industry. According to NFT marketplace Opensea, over 80% of items created with their free listing tool were fake, consisting of counterfeit collections and spam. Rug pulls strip DeFi users of billions of dollars – in 2021 alone, $10 billion was stolen, a whopping 81% increase compared to the previous year.
Even though blockchain data records are accessible to anyone in the world with all essential information such as active wallet addresses, transaction history and values, tracking, visualizing, analyzing, and understanding this real-time on-chain data isn’t as easy without on-chain analysis tools.
Which is why we are starting to see several different on-chain analytics tools launched in the market. On-chain analysis tools gather transaction data from the blockchain, and visualize it on simple dashboards which display key on-chain metrics.
Combining this data on simple, easy-to-use, charts and dashboards makes information finding and interpreting much easier. It allows both professional traders as well as retail users to gather straightforward insights for strategic and well-informed trading decisions.
What are on-chain analysis tools?
On-chain analysis platform workflow stages are data: inspection, identification, clustering, modeling, and visualization. First stage is about gathering publicly available data on blockchain, and then identifying the necessary and valuable information. Then, on-chain analysis tools cluster and group this data, after which various data modeling techniques are applied and the data is visualized on charts, for some on simplified customizable dashboards.
Best on-chain analysis tools for retail users
As the popularity of NFTs and NFT collections, and Metaverse games is increasing, on-chain data analysis platforms are becoming increasingly necessary among retail users. The problem is that most of the current tools are targeted towards professional traders, rather than individual users. Current cryptocurrency and other digital asset data tools offer a broad spectrum of capabilities.
Most popular tools include Poocoin, Nansen AI, Etherscan, Coinmarketcap, Coingecko, Dextools, Chainalysis and several others. Each comes with their own pluses and minuses depending on the target user, whether they show cross-chain data, focus solely on trading- related information, or what kind of subscription models they offer.
Basic free subscription exists for most of them, however, important features often come at premium prices. What is more, most of these on-chain analysis tools are hard to understand and use, and often lack good user experience (UX) and user interface (UI) quality.
However, some tools are better than others for specific functions, and come with their own pros and cons depending on the target user. Below, we highlight some of the best on-chain analysis tools aimed specifically at retail users that come free of charge, and can offer good insights for daily trading decisions.
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Poocoin
Source: poocoin.app
Poocoin app is a decentralized exchange that offers both trading and analysis functions, a community-powered platform with little public information about its founders and background, who remain anonymous. Poocoin facilitates trading of low-cap coins on the Binance blockchain and has their own token, PooCoin (POOCOIN).
It has been deemed as the more controversial tool after introducing some questionable tokens and coins in the past. Which is why users of Poocoin should be aware of potential rug-pulls and do their research into each coin or token to see if they are valuable or not.
But other than that, the tool itself is actually very real, and offers all the necessary information and insights for individual traders including diverse tools: charts, transaction, wallet, and yield-farm tracking, and its own DeFi exchange. Besides most of the features, which are free, PooCoin offers a few premium ones for coin holders, for example, tracking of other wallets and disable ads.
Poocoin is aiming to rival leading DeFi exchanges like Uniswap and Pancakeswap, on top of the trading function, they differentiate by offering analytics interfaces, real-time data, and low-cap coins that other DEX’s aren’t offering.
Pros: free to use, targeted to retail users, own DeFi exchange, real-time data
Cons: bad UX/UI, potential rug-pulls, only Binance blockchain, ads
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Etherscan
Source: etherscan.io
Etherscan is an analytics platform that allows users to access transaction details about any pending or confirmed transactions and holder supply on Ethereum blockchain. Etherscan is free to use and it isn’t obligatory to register to use the basic features.
For example, users can see statistics including real-time market cap data of ETH as well as charts with prices of the past two weeks, previous block and transaction data, hash rate, and network difficulty, and search for data by wallet address, hash, or tokens.
Etherscan is a centralized platform, and anyone can use it to analyze on-chain metrics like gas fee fluctuations or transaction history. Users can utilize this information to track their portfolio or check for any suspicious activity. It is a more general tool which mostly shows the movement and flow of an asset.
Pros: free to use, clear and easy user interface, clear transactions information, clean and ad-free sit, good blog about all Ethereum related topics
Cons: only data on Ethereum blockchain, not very beginner friendly
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DEXterlab
Source: dexterlab.com
DEXterlab is a free on-chain analysis and digital asset discovery tool, aimed at both retail users as well as professional traders for discovering emerging projects and new trends. DEXterlab tool isn’t yet live, on their website they say it will be launched very soon, however, the exact date is unconfirmed.
What is known so far is that DEXterlab aims to provide real-time on-chain data across multiple blockchains, where users can trade multiple digital assets, and track both new and old projects from NFTs, NFT collections, Metaverse games, to coins and tokens. All data is presented on an easy and understandable UX/UI dashboard, all features are free of charge, and data dashboards can be personalized.
A unique feature that isn’t yet found in the other tools in the market, at least on a free subscription, is the ability to follow major wallets and cluster them to either major wallets (whales), regular users, bots, or DEX’s, which would give better insight into holders for make better-informed trading decisions, and avoiding possible rug-pulls.
Pros: free of charge, real-time data across multiple chains, follow major wallets function, trading, NFTs and Metaverse games data, beginner-friendly
Cons: yet to launch, not tested
Conclusion
All in all, it really comes down to the desired functionality and the aim you want to use the tool for, some on-chain analysis tools have more specific features – PooCoin tracks Binance Smart Chain (BSC) data and has more trading-related features, whereas Etherscan provides on-chain data on Ethereum.
Besides the listed tools, there are a variety of on-chain data platforms out there, each with its pros and cons and unique functionalities. The value of on-chain data presented in a simplified manner on charts and dashboards can really help traders gather insights, and in turn make better decisions.
However, it is crucial to always do some further extra research into more specific tools available to get unbiased insights, and use publicly available information such as new articles in combination with analytical data points.
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