Onchain Metrics for crypto… ON FIRE

On-chain metrics are an essential part of analyzing and understanding the behavior and trends within cryptocurrency networks. Unlike traditional financial markets, where trading data is more readily available, cryptocurrencies operate on blockchains, which are decentralized and transparent public ledgers. This transparency allows for the collection and analysis of various on-chain metrics that provide valuable insights into the health and activity of a particular cryptocurrency.

1. Transactions and Transaction Volume:

The number of transactions and the total transaction volume are fundamental on-chain metrics. They provide insights into the level of adoption and activity within a cryptocurrency network. High transaction volumes indicate increased usage and demand for the cryptocurrency, while low volumes might suggest a lack of interest or utility.

2. Active Addresses:

The number of active addresses refers to the count of unique addresses that participated in transactions (either as senders or receivers) within a specific time frame, typically within a day or a week. This metric gives an idea of the level of engagement and user activity within the network. A growing number of active addresses generally indicates a healthy and vibrant ecosystem.

3. Wallet Balances and Distribution:

Analyzing wallet balances and their distribution across different address brackets can reveal valuable insights about wealth concentration and the behavior of major holders, often referred to as “whales.” A more evenly distributed wealth is generally considered favorable for the long-term stability and decentralization of a cryptocurrency.

4. Token Circulation and Velocity:

Token circulation refers to the movement of tokens within the network over a specific period. By calculating the token velocity, which is the ratio of the transaction volume to the average token supply, analysts can assess how frequently tokens are changing hands. A higher velocity may indicate more active trading but could also imply a lack of token holding and potential speculative behavior.

5. Network Hash Rate and Mining Metrics:

For cryptocurrencies that use a proof-of-work (PoW) consensus mechanism, the network hash rate is a critical metric. It represents the computational power dedicated to mining and securing the network. A higher hash rate indicates a more secure network. Monitoring mining metrics, such as difficulty adjustments and block times, provides insights into the network’s stability and miner participation.

6. Token Age Consumed:

Token age consumed measures the number of days since tokens in a transaction were last moved. It helps identify the periods when long-term holders or dormant addresses become active, providing insights into potential market trends or periods of accumulation or distribution.

And more onchain metrics:



Link to capitalization and onchain metrics 

Have a look into bitcoin about, real time:


This onchain indicator call TOP CAP, uses market cap and price information as inputs. It is therefore not an onchain indicator.

To calculate Top Cap, it is first necessary to calculate Average Cap, which is the cumulative sum of Market Cap divided by the age of the market in days. This creates a constant time-based moving average of market cap.

Once Average cap is calculated, those values are multiplied by 35. The result is Top Cap.

Remember, do your own research (DYOR), but everything suggests that bitcoin has a bright future, on the rise. The onchain indicators only reinforce this statement.

It is not a purchase recommendation, as I am always explaining to you, everything exposed is my vision of the market, but each person must decide for himself, if he is going to invest, especially for those of you who are now coming to the crypto world, and you are going to do it, for the first time.

Happy Saturday!

Jesús Sánchez-Bermejo