After the FTX incident, in addition to checking the capital reserve certificates of major exchanges, as investors we must also strengthen the analysis of on-chain data.
Our investments are scattered across various projects. How can we save our time and organize our investments at the lowest cost? We should also conduct data analysis on the projects of interest, explore the potential of these projects, and even find some high-quality investments?
This article will share some relatively reliable and currently free tools. I hope these tools can be put in everyone’s investment toolbox so that everyone can enjoy DeFi together.
These tools have their own strengths. Some can help you look at the fundamentals of some projects and provide some references in this macro dimension. Others can provide us with convenience to manage our own investments and allow us to discover some potential good projects.
https://glassnode.com/
First of all, for the fundamentals, the macro dimension of on-chain data analysis, I believe that everyone should be familiar with the famous glass node, which should have the most detailed on-chain analysis data on the market, but the disadvantage is that if you use the free version, many data indicators are invisible. Here we introduce several other free tools to provide you with some basic data references.
The first tool is token terminal, which is a bit like glass node, but it provides a lot of information for free. It not only summarizes the basic data indicators, but also distinguishes them by market type and provides some data for in-depth analysis according to specific projects.
https://tokenterminal.com/
For example, from the revenue data of historical project agreements, we can find out the market share of newly emerged projects. We can see its price-earnings ratio, revenue, and so on.
The second tool is Dune analytics, which is a free and instant tool. First of all, we can see various dashboards created by everyone in the community, and based on these tags, we can quickly locate the content we want to see. We can also look at the project comparison dashboards made by community partners, which show visual data. Therefore, here you can search and find data analysis and on-chain reports made by many community partners to make a judgment on the fundamentals.
https://dune.com/browse/dashboards
In addition, we can click on each picture or each table to see the code for making these charts and obtain these data, and intuitively see the proportion of circulation volume. It is more suitable for students who can do database query or want to learn about database query, and then obtain this first-hand information.
The third tool is called lunar crash. This project has its own tokens. You can study and analyze the project to see if it is worth participating. What I want to share here is that they collected data on the sensitivity and popularity of the social network. For example, we can see the social volume, social engagement and social dominance of the project to track the popularity of their social media, which may help us discover some strange popular projects.
https://lunarcrush.com/
The fourth tool is rugdoc. It can help analyze whether the project is high-risk or a scam project. It will analyze whether there are potential risks from the code level of the contract. It will also tell you whether the project owner has done similar bad things in the history of the project to give you a reminder. Of course, this is because there are so many new projects, not all projects are listed above, but basically this tool can help us avoid stepping on some huge pits or avoid us from entering a scam project.
https://rugdoc.io/
The last tool introduced is Defi Llama. This project not only provides data on the locked amount of various online projects, but also has the function of tracking airdrops. It lists some projects that have not yet officially issued coins on exchanges but may issue airdrops. You can check out the projects you are interested in to see if you can get some benefits.
https://defillama.com/
This is the end of the introduction to the Defi toolbox. I hope you can use these tools to make your own judgments and make more money in the Year of the Rabbit.
The above is some useful information about on-chain analysis. The article only represents my personal opinion and does not constitute any investment advice. Please invest with caution.