Stacked Insights Newsletter, 11.22.21 The best resources f | Stacked
Stacked Insights Newsletter, 11.22.21
The best resources for learning on-chain analysis
On-chain analysis is something you hear about from big league traders but feels impossible to learn on your own. Thankfully on-chain analysis is nowhere near as complex as it often seems. No, it’s actually downright simple because you’re essentially just making straightforward interpretations of public data on blockchains.
We walked you through a few of the basic necessities for learning about on-chain analysis in our previous updates. Some of those basics are:
Tracking token movements on/off exchanges
New wallet creation to track adoption
Using on-chain indicators like the Puell Multiple
You have the basic ideas, now it’s crucial to look at who the best in the business are so you can follow by example. Without further ado, here are some of the best on-chain analysts and tools at your disposal.
Best on-chain analysts
There are technical analysts, fundamental analysts, and then there are on-chain analysts. OCAs are a combination of technical + fundamental analysts as they use analytical data to interpret fundamental factors. The best on-chain analysts to follow today are:
Willy Woo is an on-chain expert with nearly 1M Twitter followers.
Ki Young Ju founded CryptoQuant and delivers precise OCA.
David Puell invented the Puell Multiple and other OCA indicators.
As a starter pack, the above three OCAs are the best in the biz and will help you quickly understand the ins and outs of tracking blockchain data. Go to Willy Woo for bite-sized kernels of wisdom, Ki Young Ju for wallet ←—> exchange flows, and David Puell for advanced lessons on OCA.
Tools you can’t miss
On-chain analysis demands up to the second data on token movements across blockchains and exchanges. You need to interpret data accurately — but there’s so much of it that you can’t go without game-changing tools.
Glassnode is widely respected as the leader in on-chain metrics.
CryptoQuant promises actionable on-chain data.
Parsiq is a decentralized platform for monitoring on-chain data.
Glassnode is the industry standard for following blockchain financial data. However, CryptoQuant is a crowd favorite amongst retail traders. Finally, Parsiq lets you build custom modules for monitoring blockchain data in real-time so you can set up alerts and signals.
Top on-chain indicators
To get the most out of on-chain data, you need to head straight for the best indicators to build a picture of the global situation. Get started with the following indicators:
Wallet <-> exchange inflows & outflows: Learn to identify when traders are depositing large sums of tokens into exchanges. This often signals a sell-off is near.
Fiat & stablecoins flows between exchanges: When price action is led by fiat to crypto exchanges, institutions & retail are leading the charge, whereas stablecoin led bull runs indicate seasoned crypto traders are at work.
Track blockchain usage by units transferred: The more token units transferred on a given day/blockchain, the greater the demand for that blockchain + asset, leading to a jump in price down the line.
This is not a conclusive list of on-chain indicators but is a great starting point for using some of the most widely quoted indicators in the OCA space. Get to know how to track exchange inflows and blockchain usage like the back of your hand, then you’ll have an easy time determining market sentiment without checking Crypto Twitter.
