Author: Kyle Liu, Investment Manager, Bing Ventures

introduction

In today’s rapidly developing blockchain field, on-chain data has become a core asset and its ecological status is becoming increasingly important.From token trading to NFT minting, every detail of on-chain activities draws the full picture of value flow.In this data-driven era, on-chain data is not just a pile of numbers, but a true reflection of market dynamics, user behavior and even the health of the entire blockchain ecosystem.

Marketing tells us that consumer behavior analysis has a profound impact on the future trends of the overall market.Similarly, in the on-chain world, in-depth analysis of user behavior and its insights are invaluable to market participants.As leading crypto circle data analysis projects, Nansen, Lookonchain and Dune Analytics not only provide users with in-depth on-chain data analysis, but also an indispensable and important part of the development of blockchain.This study will explore in-depth the characteristics of these three platforms and their importance to the development of blockchain technology.

The importance of on-chain data analysis

On-chain data reflects user behavior.In the world of blockchain, on-chain data can represent all identities such as individuals, institutions, exchanges, market makers, etc. participating in on-chain activities.On-chain data analytics can provide insight into market trends and user behavior, identify potential opportunities and risks, improve operational efficiency and reduce costs, support decision-making and strategic planning, and strengthen security and risk control.Through in-depth analysis of on-chain data, retail investors or institutions can obtain at least the following benefits:

1. Provide data support for decision-making: On-chain data provides investors and project parties with an objective perspective, helping them better understand the actual situation of the market and make informed investment decisions.

2. Optimize market strategy: In-depth analysis of on-chain data to help project parties and traders understand market demand and changes, and thus adjust market strategy.

3. Improve operational efficiency: Optimize resource allocation and processes by identifying bottlenecks and problems in operations.

4. Promote innovation and R&D: Provide valuable feedback to project parties to help them understand user needs and keep pace with market and user needs.

5. Improve transparency and trust: On-chain data provides an open and transparent platform for all participants in the decentralized ecosystem to enhance system trust.

6. Discover potential opportunities and risks: Helps identify market opportunities and potential risks and reduce risks.

7. Strengthen security and risk control: monitor and analyze on-chain data in real time, promptly detect abnormal behaviors and risk events, and prevent and respond.

Source: Bing Ventures

Typical features of Web3 data tools

Nansen, Dune Analytics and LookOnChain are unique and provide users with unique and in-depth insights as leaders in the field.In-depth analysis of these tools not only reveals their respective strengths and limitations, but also explores future trends in the data market and its impact on investors.

Nansen — The Pioneer of On-chain Behavior Analysis

Source: Nansen

Nansen provides an in-depth understanding of the crypto market through a behavioral analysis of more than 120 million wallet addresses.It mainly focuses on token holdings, exchange inflows, and the dynamics of smart contracts.Nansen uses its complex labeling system and early warning system to enable users to quickly identify market trends and capture investment opportunities in a timely manner.

In-depth analysis at the token level

Nansen’s analysis at the token level covers multiple dimensions, including changes in Smart Money’s holdings, exchange capital flows, and the overall market performance of the token.This comprehensive perspective allows investors to understand market dynamics from multiple angles, thereby making more accurate investment decisions.

Source: Nansen

Practical operation

Source: Nansen

Start from the market level, look at the transaction status of smart money that day, and infer their trading thinking (large purchases: potential speculation opportunities; large-scale selling: potential selling opportunities), so as to discover potential projects for investment.Unfamiliar projects can be studied more deeply.

Source: Nansen

In the cryptocurrency and blockchain spaces, smart money operations are often seen as one of the indicators of market trends.Different smart money groups, such as Flash Boys, funds and other large holders, have their own unique trading models and strategies.A deep understanding of these patterns and strategies can provide investors with valuable trading signals and market insights.

1. Flash Boys’ Trading Observation

• Features

Flash Boys usually pursue short-term profits, and their trading strategies are often based on technical analysis and market sentiment rather than long-term fundamental analysis.

• Trading signals

Observing Flash Boys trading can provide clues to short-term market trends.For example, if Flash Boys buys a token in large quantities, it could mean that the token has potential for a rise in the short term.

• risk

Since Flash Boys’ strategies are often based on short-term trends, following their trades may pose higher risks.Investors need to make sure their trading strategies match their own risk tolerance.

1. Fund trading observation

• Features

Funds and other large holders often adopt more conservative and long-term investment strategies.Their trading decisions may be based on in-depth market research and fundamental analysis.

• Trading signals

Observing the transactions of funds can provide clues to medium- and long-term market trends.For example, if multiple large funds start to increase their holdings of a token, this may mean that the token has long-term growth potential.

• Policy reference

Funds’ investment strategies are often more stable and systematic.By analyzing the trading patterns of funds, investors can learn and refer to their investment strategies to optimize their investment portfolio.But Crypto’s fund investment is often accompanied by regular unlocking of tokens.Therefore, the holdings and transfers of funds cannot reflect the market’s judgment on the trend of a specific currency to a certain extent.Investors need to be more cautious.

Smart contracts and liquidity provider analysis

Nansen shows users key metrics such as annualized rate of return (APY) by tracking trading pairs of popular contracts and liquidity providers (LPs).These data are crucial to assess the potential value and risks of DeFi projects.

Source: Nansen

Label system and early warning mechanism

Nansen’s labeling system and early warning mechanism provide timely feedback on market trends.By tracking specific tags and wallet addresses, users can obtain important market information in a timely manner and quickly adjust their investment strategies.

Source: Nansen

Practical operation

Source: Nansen

Nansen AI’s early warning system provides cryptocurrency investors and project parties with a powerful tool to help them capture market dynamics, manage risks and optimize strategies in a timely manner.

1. Multi-chain support

• Full coverage

Supporting multiple public chain networks means that investors can track the dynamics of multiple markets, thereby gaining a more comprehensive market perspective.

• flexibility

Whether it is TOKEN or NFT, users can choose and track according to their needs, providing great flexibility.

1. Custom alerts

• Tracking of smart money

Users can add smart money’s wallet address to keep abreast of their transaction dynamics, thereby capturing market opportunities or avoiding risks.

• Tag indicator filtering

Through the numerous tag indicators provided by @nansen_ai, users can set early warning conditions more accurately to ensure the relevance and accuracy of early warnings.

• Amount filter

Set up early warnings based on the transaction amount to help users capture important dynamics of large-scale transactions and markets in a timely manner.

1. Notification function

• Multi-platform access

Source: Nansen, Telegram

Early warning can be connected to TG (Telegram) and DC (Discord), ensuring that users can receive early warning information in a timely manner on multiple platforms.

1. User-friendly

• Simple and easy to use

Users can easily customize and set early warning conditions without complicated operations.

• flexibility

The early warning system provides strong selectivity and operationality, and users can flexibly configure it according to their needs.

Overall, the services provided by Nansen’s AI system are relatively similar to those provided by Bot, which are tracked based on the relevant information of specific addresses/tokens entered in advance, and the user experience also adopts a Telegram-based push form similar to Bot.At present, AI participates in intelligent analysis with a relatively low degree, mainly based on related pushes made by on-chain activities. From the current perspective, it still lacks some innovation and competitiveness.Nansen may make efforts in related products in the future.

Dune Analytics — Data-driven market perspective mirror

Dune Analytics provides powerful SQL-based data analytics covering multiple aspects of the cryptocurrency and DeFi field.Its community-driven model and open data access strategies make it a vibrant analytics platform.

Source: Dune

Community Sharing and Collaboration

Dune’s community culture encourages data sharing and collaboration, providing users with a continuously evolving data analysis environment.Users can easily access and modify other people’s analytics dashboards to create new perspectives that adapt to market changes.

Powerful customization functions

Dune’s customized function allows users to adjust the data display method according to their personal needs.This flexibility is a big advantage of Dune, making it a highly adaptable tool, especially for advanced users with specific data needs.

In addition, Dune Analytics’ comprehensiveness is also an important reason for its popularity.It supports data analysis of multiple public chains and provides users with a comprehensive market perspective.Regardless of which project or field the user cares about, they can find detailed data and in-depth analysis on Dune.

Operability

Dune Analytics demonstrates its powerful features and user-friendly design in terms of operability.

1. Chart flexibility

Dune allows users to enlarge, full screen and select any part of the chart, which provides users with a highly customized experience, allowing them to view and analyze data according to their needs.

1. Fork features

With the Fork feature, users can easily copy the entire dataset to their workspace.This design encourages users to explore and experiment, while also providing them with a safe environment to modify and innovate without affecting the original dataset.

1. Query and code transparency

The Query feature provides users with the ability to view datasets to implement code, which not only increases transparency, but also allows experienced users to gain insight into the source and how data is processed.

1. Search and sorting functions

Dune’s search feature allows users to quickly find the project information they need and sort it by popularity, collections, and release dates.This greatly improves users’ productivity and makes it easier for them to find and analyze relevant data.

1. Code reuse and modification

Dune encourages users to copy successful datasets through Fork and allows them to modify their code.This design lowers the barriers to entry for users because they can start with existing data sets and then adjust to their needs.

Source: Dune

Compared with Nansen, Dune’s advantages are reflected in its customizable design-related data. Users can make the data they want based on the already open API interface and other methods, which is more free and more flexible.More combinations.At present, many projects will directly display/disclose their project’s relevant transaction data and operation data on Dune to provide reference for users and investors’ data.Nansen has formed “modified” data more suitable for institutional users and novice users.In the later stage, Dune can launch a reward mechanism to provide developers with dashboards to help the development of the entire Dune ecosystem.

LookOnChain — Intuitive market dynamics tracking

LookOnChain is known for its intuitive Twitter platform and deep tracking of Whale Wallet.It provides users with a unique perspective to observe market dynamics, especially when it comes to tracking the behavior of large investors.

Source: X

Whale-oriented strategy

By focusing on important whale wallets, LookOnChain allows users to quickly grasp the big market trends.This strategy is especially suitable for investors who want to follow the market leader.Through LookOnChain, investors can not only obtain transaction records for these wallets, but also gain insight into the strategies and motivations behind them.Such information is very helpful for investors who want to succeed in the cryptocurrency market.After all, having the right information and strategies is the key to success in a market full of variables.Therefore, LookOnChain provides investors with a unique opportunity to better understand the market and make informed investment decisions.

Connect Debank to deepen analysis

LookOnChain provides a more detailed analysis of the whale wallet by connecting to DeBank.This in-depth analysis helps users understand the specific strategies and market trends of these large wallets.

The three platforms each show different aspects of on-chain data analysis.Nansen provides users with a comprehensive market perspective with its in-depth wallet behavior analysis and real-time data updates.Dune Analytics provides a collaborative and innovative environment for data analysts and programmers with its powerful customization capabilities and community sharing culture.LookOnChain allows ordinary users to quickly understand market trends through a simple and intuitive way.

Comparative analysis based on multi-dimensional business evaluation model

Data tracks are one of the indispensable infrastructures in the Crypto industry.Data analysis platforms can not only assist investors in making investment decisions, but also provide assistance to AML and tracking crime.On-chain behavior analysis is one of the selling points of data platforms. The advantage is that it can detect potential investment opportunities in the early stage, and the disadvantage is that it brings risks caused by uncertainty in investment opportunities.In any case, the information provided by on-chain data should be used as auxiliary information for decision-making.Investors need to implement their operations accurately based on actual conditions and their own judgments.

Overview of Web3 Data Tool Product Money Mode

Nansen: Institutional think tank type, more elite

Business profitability: In order to reach all kinds of users, Nansen has launched three levels of services, namely $150 per month (standard level), $1500 (VIP level) and $2500 (alpha level).By paying, you can obtain research reports produced by the Nansen team and analyze projects, and you have the opportunity to contact Nansen’s professional research analysts.

Source: Nansen

Token Economic Model: No tokens have been launched at present.

Dune Analytics: Developer Community, Better Fun

Business profitability method: Ordinary users can access blockchain data for free, create dashboards, share charts and fork existing queries.When it is necessary to run multiple queries at once, skip query execution queues, export results, keep information private, or delete watermarks, they need to upgrade to “Dune Plus” or “Dune Premium”, which are currently priced at $349 and $389, respectively, respectively.USD/month.In addition to being more powerful in the basics, it also provides more API calls per minute, which helps deepen enterprise-customer connections and can transform the platform from an external data provider to a part of the customer’s core infrastructure.

Source: Dune

Token Economic Model: No tokens have been launched at present.

LookOnChain: Follow the hot spot type, with greater communication effect

Business profit method: LookOnChain currently provides free consultation to users on the X platform, and profit methods include paid user groups and exchange-related user recommendations.

Token Economic Model: No tokens have been launched at present.

From the traditional multi-dimensional business evaluation model

When comparing these three blockchain data analysis tools, we found that Nansen, Dune Analytics, and LookOnChain each showed significant advantages and limitations in different dimensions.Nansen leads in data depth and multi-chain support, Dune Analytics stands out in user experience and community-driven content innovation, while LookOnChain has unique advantages in providing intuitive market insights.

Technological innovation

Nansen’s technological innovation is reflected in its in-depth analysis of more than 120 million wallet addresses.Its core advantage lies in the ability to comprehensively analyze token holding status and smart contract activity, thereby providing users with a comprehensive view of the market.However, behind this technological strength lies an over-reliance on marked addresses, which may lead to blind spots on emerging or unlabeled addresses.

Dune Analytics demonstrates its outstanding SQL capabilities in data processing.This capability not only makes it a leader in data analytics, but also provides a powerful customization tool for the developer community, which is extremely rare in the market.We are very optimistic about this model.

LookOnChain’s innovation lies in its ability to directly track transaction dynamics of large investors (Whale Wallet).This is crucial to quickly capture market trends, especially in cryptocurrency markets with extremely volatile conditions.

Market adaptability

Nansen demonstrates broad adaptability to the blockchain ecosystem by supporting multi-chain data analysis.However, this breadth may lead to dispersed concerns, which affects in-depth analysis of specific chains or market segments.We did find this shortcoming of Nansen when using it, and it cannot follow up on the analysis of currency data of hot sectors or narratives in time.

Dune Analytics quickly adapts to market changes through its open community culture and easy-to-use interface design.This flexibility makes it the first choice for users who pursue quick response and insight.

LookOnChain has achieved rapid adaptation to social media-driven market dynamics by leveraging the popularity of the Twitter platform.But this also brings the risk of over-reliance on a single platform.

User Experience

The tag system and early warning system provided by Nansen bring a highly personalized experience to users, but for beginners, complex user panels still mean a high learning curve.

Dune Analytics has received high user experience scores for its simple SQL interface and rich community content.Its user-friendliness not only attracts technical users, but also provides users with an easy-to-understand data view.This is a win-win situation.

LookOnChain provides an excellent experience for non-technical users with its intuitive information display and simple user interaction.However, the depth and breadth of its information may sometimes not be sufficient to meet more advanced user needs.

Business model and profitability

Nansen’s multi-level subscription service reflects its deep understanding of user groups in different markets.This differentiation strategy not only enhances its market coverage, but also brings it a stable revenue stream.

Dune Analytics demonstrates its flexible business model by offering free services and premium subscription options.This strategy not only ensures the activity of the community, but also brings profit potential to it.

LookOnChain takes full advantage of its huge Twitter fan base as a source of profit, showing its innovation in business models.However, the sustainability and stability of this model need to be further verified.

On-chain Data Service Evaluation Framework (ODTEF)

In view of the characteristics of the data analysis tool on the Web3 chain, we have further optimized the traditional multi-dimensional business evaluation model to make it more targeted.We will name this optimized model as the “Onchain Data Tools Analysis Evaluation (ODTEF), which pays more attention to the characteristics of blockchain technology and the uniqueness of data tools in the Web3 environment.The main evaluation dimensions include the following aspects:

1. Decentralized capabilities:

Evaluate the degree of decentralization of tools in data management and analysis, including distributed features of data storage, processing and access.

1. Real-time data tracking and transparency:

Can the analysis tool provide real-time on-chain data monitoring and performance in data transparency and traceability.

1. Smart contract analysis and interaction capabilities:

Examine the tools’ ability to analyze smart contracts, as well as the degree of interaction and integration with on-chain resources (such as DeFi, NFT).

1. Web3 data security and anonymity:

Focus on the protection of user privacy when the tool processes on-chain data and data security in the Web3 environment.

1. Economic Models and Token Economics:

Assess whether the tool’s business model is integrated into token economics and how it leverages cryptocurrencies and token incentives to drive the ecosystem.

Nansen: A model of on-chain intelligence and in-depth analysis

1. Decentralized capabilities:

Nansen excels in data integration and analytics, but its reliance on centralized data warehouses weakens its decentralization potential in Web3 environments.In the future, Nansen needs to explore more decentralized storage and analysis solutions to strengthen its leading position in decentralized data processing.

1. Real-time data tracking and transparency:

Nansen has performed well in real-time on-chain data monitoring, especially in monitoring token liquidity and large-value transactions.However, in terms of data transparency, users’ understanding of data sources and analysis logic needs to be further strengthened.

1. Smart contract analysis capabilities:

Nansen provides relatively comprehensive smart contract analysis capabilities, especially in analyzing DeFi projects and the NFT market.In the future, Nansen needs to continuously strengthen in-depth integration with smart contracts to provide richer interactive analysis.

1. Web3 data security and anonymity:

Nansen has shown high standards in terms of data security and privacy protection.However, with the development of the Web3 environment, Nansen needs to further strengthen its data processing and storage mechanisms to better protect user privacy.

1. Economic Model and Token Economics:

Nansen’s business model is based mainly on subscription services and has not yet widely integrated token economics.Looking to the future, Nansen may consider introducing tokenized incentives to enhance user engagement and ecosystem activity.

Dune Analytics: The Frontiers of Community Driven and Custom Analytics

1. Decentralized capabilities:

Dune Analytics has performed well in providing decentralized data analytics, especially its community-driven data sharing and analytics model.However, there is still room for improvement in the degree of decentralization of data storage and processing.

1. Real-time data tracking and transparency:

Dune Analytics provides highly transparent data analytics and visualization, especially in community-created dashboards.This transparency and real-timeness brings in-depth market insights to users.

1. Smart contract analysis capabilities:

Dune Analytics provides a high degree of flexibility and customization for smart contract analysis, but it still needs to improve its depth and accuracy in some complex scenarios.

1. Web3 data security and anonymity:

As Web3 data security and privacy protection grow increasingly important, Dune Analytics needs to continue to strengthen its measures in this regard to protect user data and privacy.

1. Economic Model and Token Economics:

Dune Analytics’ business model is outstanding in terms of flexibility, but is still in its infancy in the integration of token economics.In the future, Dune can explore how to integrate token economics into its business model.

LookOnChain: The leader in real-time monitoring and market insights

1. Decentralized capabilities:

As a social media-based data analysis platform, LookOnChain still has room for improvement in data decentralization, especially in the decentralization of data storage and processing.

1. Real-time data tracking and transparency:

LookOnChain demonstrates its unique advantages in real-time tracking of whale accounts and large transactions, providing instant and transparent insights to the market.

1. Smart contract analysis capabilities:

LookOnChain has relatively limited in in-depth analysis of smart contracts, and it needs to strengthen its analysis capabilities for complex smart contract interactions in the future.

1. Web3 data security and anonymity:

In the Web3 environment, LookOnChain needs to further strengthen data security and user privacy protection, especially in processing sensitive transaction data.

1. Economic Model and Token Economics:

LookOnChain’s business model is relatively simple and mainly relies on cooperation between paid users and platforms.In the future, it can be explored to integrate token economics into its development strategies to enhance user participation and ecological activity.

How to improve the presence of on-chain data analysis in a fancy way

Based on the above analysis, Nansen, Dune Analytics and LookOnChain each have shown unique advantages and potential in the field of on-chain data analysis.They have varying degrees of performance in decentralized capabilities, real-time data tracking, smart contract analysis, Web3 data security and business model.We expect Nansen to consolidate and even expand its leadership in the market by extending support chains and enhancing analytics capabilities.Dune Analytics may continue to maintain its leadership in the field of Web3 data analytics by enhancing the community and enhancing the capabilities of the tool.LookOnChain will improve its competitiveness in the market by collaborating with more platforms and data providers, as well as enhancing its data analytics services.

Nansen: Integrating decentralized data storage and analysis

1. Develop a decentralized data warehouse:

Nansen should explore the use of blockchain technology to store and process data to improve the degree of decentralization of data.For example, we cooperate with hardware projects and even the currently popular DePin-type projects, on the one hand, to enhance data security and immutability, and on the other hand, to further expand the high-end user market such as institutions.

1. Real-time analysis of on-chain data:

To provide more real-time market analysis, Nansen can develop smart contracts to monitor and analyze on-chain events in real time, such as large-value transactions and changes in token liquidity.This will enable Nansen to provide market dynamics and trading opportunities instantly.

1. Deepen smart contracts and DeFi analysis:

Nansen should further deepen its smart contract analysis capabilities, especially in the DeFi ecosystem.For example, provide DeFi projects with more in-depth risk assessment and return analysis to help investors make smarter decisions.

Dune Analytics: Extended Community-driven Model

1. Community incentive mechanism:

Dune Analytics can introduce token incentives to encourage community members to create and share high-quality data analytics dashboards.This can not only increase user participation, but also enrich the platform’s data resources.

1. Improve decentralized data processing:

Dune Analytics should explore decentralized data processing solutions, such as using decentralized computing resources to run complex data analytics.This will improve the transparency and security of data processing.Dune has a very rich source of data, which is the biggest capital for their future integration with the AI ​​business.

1. Strengthen smart contract integration:

Dune Analytics can further enhance integration with smart contracts, allowing users to interact with smart contracts directly from the dashboard, such as executing transactions and participating in DeFi protocols.Dune can even further explore becoming one of the preferred blockchain development platforms for Web3 developers, so that it is possible to ensure that the potential of hot projects and potential narratives are born directly on Dune, not just interesting charts.

LookOnChain: Improve data analysis depth

1. Enhanced smart contract analysis function:

LookOnChain should enhance its analytics of smart contracts, especially for complex DeFi protocols and NFT projects.This can help users gain a deeper understanding of the internal mechanisms and risks of these projects.

1. Extend data sources and collaborations:

LookOnChain can expand its data sources by working with more blockchain projects and data providers.This not only provides a more comprehensive market perspective, but also increases users’ trust in data accuracy.

Redefine the future of Web3 data analysis tools

1. Go beyond the traditional model and move towards true decentralization:

Traditional data analytics relies on centralized data storage and processing, but in the Web3 field, this model needs to be reshaped.Tools such as Nansen, Dune Analytics and LookOnChain should explore blockchain-based data storage and analysis methods, such as ensuring data transparency and immutability through distributed ledgers, or using decentralized computing resources for data processing.This is not only a technological innovation, but also a fundamental change in the philosophy of data processing.

2. Real-time data analysis: From reaction to foresight:

The future of Web3 data analysis tools lies in real-time and foresight.Tools should shift from simple data monitoring to intelligent systems that can predict market trends and identify patterns.For example, real-time analysis and prediction of market dynamics can be achieved through the use of machine learning and artificial intelligence technologies.

3. In-depth integration and interaction of smart contracts:

Web3 data analysis tools should integrate smart contract technology more deeply.This means not just analyzing smart contract data, but enabling tools to interact directly with smart contracts, providing richer features such as automated transactions, risk assessments, and policy execution.

4. Data Security and Privacy: Building a New Framework for Trust:

In the Web3 era, data security and privacy protection will become core competitiveness.By adopting advanced technologies such as zero-knowledge proof, data analysis tools can conduct in-depth analysis without revealing user sensitive information, thereby building a safer and trustworthy ecosystem.

5. Innovation in token economics:

Web3 data analysis tools should explore the integration of token economics into their business models and functions.This is not limited to incentive mechanisms, but also includes the use of tokens as a medium of exchange, proof of stake and governance tools to create a self-value-added and sustainable ecosystem.

6. Future-oriented agility:

Finally, Web3 data analysis tools must be agile and adaptable to deal with rapidly changing technology and market environments.This means continuous iteration, rapid integration of emerging technologies, and continuous optimization of user experience.Whoever iterates the functions faster and optimizes the products faster will be more likely to win.

The future development direction of Web3 data analysis tools is not only technological progress, but also a fundamental innovation in the nature of data analysis and business model.Data providers will be expected to become predictors of market dynamics, assistants to user decision-making, and active participants in the blockchain ecosystem, thus having a higher sense of presence.

The future development of these tools will be affected by many factors such as their technological innovation, market adaptability, user experience, business model and future development potential.With the continuous advancement of blockchain technology and changes in market demand, these tools need to be continuously adjusted and optimized to maintain their competitiveness in the market.