On-Chain Analytics for Traders: Mastering Dune, Nansen, and DeFi Llama

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On-chain analytics for traders

In the fast-paced world of cryptocurrency trading, data is king. On-chain analytics refers to the process of examining data directly from blockchain networks, such as transaction volumes, wallet activities, and smart contract interactions. Consequently, this approach gives traders a transparent view of market behaviors that off-chain data—like stock prices or news sentiment—often misses. For beginners, think of on-chain analytics as peeking under the hood of a car engine to see how it’s really performing, rather than just looking at the dashboard speedometer.

Why do traders need on-chain analytics? It helps spot trends early, identify risks like potential rug pulls, and track “smart money” movements from experienced investors. Furthermore, tools like Dune Analytics, Nansen, and DeFi Llama make this accessible, turning complex blockchain data into actionable insights. In this article, we’ll explore these platforms in detail, with simple explanations, beginner-friendly examples, and tips for crypto trading. Whether you’re trading ETH/USD pairs or diving into DeFi, these tools can sharpen your edge. To understand the broader context of cryptocurrency trading, check out our complete beginner’s guide to crypto trading.

What Is On-Chain Analytics and Why It Matters for Traders

On-chain analytics involves querying and visualizing data stored on blockchains like Ethereum, Solana, or Binance Smart Chain. Unlike traditional financial analysis, which relies on centralized reports, on-chain data is public, immutable, and real-time. Therefore, traders use it to:

Detect Market Trends: See rising transaction volumes that signal growing interest in a token.

Assess Project Health: Monitor total value locked (TVL) in DeFi protocols to gauge liquidity and user adoption.

Follow Whale Activity: Track large wallet movements to predict price shifts.

Avoid Risks: Identify unusual patterns, like sudden token dumps, that could indicate scams.

For beginners, imagine trading ETH/USD without knowing if big players are buying or selling ETH on-chain—this is like driving blindfolded. Fortunately, on-chain tools democratize this data, helping retail traders compete with institutions. In 2025, with over 100 blockchains active, platforms like Dune, Nansen, and DeFi Llama stand out for their user-friendly interfaces and comprehensive coverage. To dive deeper into Ethereum’s on-chain metrics, explore our guide on key Ethereum stats and charts every investor should know.

Dune Analytics: Community-Driven Data Queries for Traders

Dune Analytics is a collaborative platform that turns raw blockchain data into queryable SQL databases, making it ideal for custom on-chain analysis. Launched in 2018, it provides historical data across 100+ chains and hosts 1.5 million+ datasets with 750,000+ public dashboards and insights, plus AI-assisted features for discovery.

Key Features of Dune for On-Chain Analytics

SQL Querying: Users write simple SQL queries to extract data, like transaction histories or token balances.

Dashboards and Visualizations: Create charts to track metrics such as DeFi yields or NFT sales volumes.

Cross-Chain Coverage: Additionally, Dune advertises 2,000+ cross-chain tables and approximately 60,000 decoded contracts.

Community Insights: Explore pre-built dashboards for quick starts.

As a result, traders benefit by discovering granular insights, such as tracking essential metrics for DeFi protocols or NFTs at a detailed level. For instance, you can query wallet activities to see if a token’s holders are accumulating or distributing. Moreover, if you’re interested in NFT analytics, learn more about leading NFT marketplaces like OpenSea, Blur, and Magic Eden.

How Traders Use Dune: Beginner Examples

Beginners can start with free tools to analyze ETH/USD trends. Here’s a step-by-step example:

Sign Up and Explore: First, create a free account and browse trending dashboards on dune.com/discover. Dune states it’s free to get started.

Run a Basic Query: Next, to check ETH transaction volumes, use SQL like:

sql

SELECT date, COUNT(*) FROM ethereum.transactions GROUP BY date;

This shows daily activity spikes, helping predict price volatility.

Build a Dashboard: Subsequently, visualize TVL in a DeFi protocol like Uniswap. If TVL rises while prices dip, it might signal a buying opportunity.

Track NFTs: Finally, query on-chain sales data for collections to spot undervalued assets before they pump.

One real-world use: Traders used Dune to analyze NFT minting patterns, identifying profitable flips by monitoring gas fees and buyer wallets.

Nansen: AI-Powered Wallet Insights for Smart Trading

Nansen is an agentic on-chain app that acts like a personal research team, specializing in wallet labeling and smart money tracking. Notably, Nansen publicly claims coverage of 20+ chains, 500 million labeled addresses, and 10,000 “Smart Money” wallets—numbers that matter if you rely on entity context.

Key Features of Nansen for On-Chain Analytics

Wallet Labeling: Identifies wallets as “top investor,” “exchange,” or “rug puller” for context.

Smart Alerts: Get notifications for specific activities, like large transfers.

Token God Mode: Dive into any coin’s trades, holders, and flows.

Portfolio Management: Track holdings with profit and loss (PnL) across chains.

API Access: For programmatic data pulls in trading bots.

These features help traders verify hunches and act fast. In particular, Nansen’s research team documented on-chain flows around the FTX collapse in November 2022, a widely cited case study in outflow detection.

How Traders Use Nansen: Beginner Examples

Nansen excels in following “smart money”—wallets of successful traders. A beginner’s guide:

Monitor Smart Money: First, search for top wallets and see what tokens they’re buying, like ETH accumulations signaling bullish ETH/USD moves.

Set Alerts: Additionally, alert for whale transfers over 1,000 ETH to anticipate dumps.

Analyze PnL: Moreover, track wallet profits to copy strategies; Nansen shows unified views across EVM chains.

Whale Holder Patterns: Use AI to spot token distributions, avoiding pumps-and-dumps.

In practice, some users report outsized gains in testimonials, but treat this as marketing and not a guarantee of results.

Pricing Note: Nansen offers subscription plans with trial options, but exact tiers change—check the current pricing page directly rather than relying on third-party summaries.

DeFi Llama: Comprehensive DeFi Dashboard for Market Overview

DeFi Llama is a free analytics hub aggregating data from thousands of protocols across hundreds of chains, focusing on DeFi metrics like TVL and volumes. Specifically, it provides real-time sections for TVL, DEX volumes, perpetuals volumes, and stablecoins, including USDT dominance, which DeFi Llama’s public dashboard recently showed at approximately 59.75%. For a comparison of leading DeFi ecosystems, read our analysis on Ethereum vs Solana in DeFi.

Key Features of DeFi Llama for On-Chain Analytics

TVL Rankings: Sort protocols by locked value to find top performers. DeFi Llama defines TVL in its documentation.

Volume and Fees: In fact, DEX 24-hour volume commonly hovers around tens of billions; a recent snapshot showed approximately $19 billion per 24 hours on DeFi Llama’s DEX dashboard.

Cross-Chain Data: Covers Ethereum to emerging chains like Base or Sui.

Yields and Unlocks: Check staking APYs and upcoming token releases.

Stablecoin Insights: Track market caps and dominance.

How Traders Use DeFi Llama: Beginner Examples

DeFi Llama is beginner-friendly with no login required. Examples:

Spot High-Yield Opportunities: First, filter staking pools by APY; stake ETH in a top pool for passive income.

Monitor TVL Trends: Similarly, if a chain’s TVL jumps sharply, it may indicate DeFi growth—consider related tokens.

Analyze Volumes: Furthermore, use perpetuals and DEX sections to focus on active venues. Decentralized perpetuals hit roughly $1 trillion+ in rolling 30-day volume in late 2025, underscoring sector depth.

Track Unlocks: Finally, avoid tokens with large unlocks to prevent dumps.

Traders profit from TVL rankings by investing in rising protocols early. Indeed, DeFi Llama is free and does not run sponsored content on its dashboards. Additionally, blockchain gaming protocols are increasingly tracked on DeFi Llama; learn more about on-chain gaming infrastructure on Arbitrum and Ronin.

Comparing Dune, Nansen, and DeFi Llama: Which Tool for Your Trading Strategy?

When choosing on-chain analytics tools in 2025, consider your needs:

Depth vs. Breadth: Dune offers deep SQL customization; in contrast, Nansen emphasizes AI-driven wallet intelligence; meanwhile, DeFi Llama gives broad DeFi overviews.

Cost: Dune and DeFi Llama have free entry points; however, Nansen is subscription-based for advanced features.

Use Cases: Use Dune for custom queries, Nansen for whale tracking, and DeFi Llama for TVL and volume scans.

Integration: All support APIs; nevertheless, Nansen stands out for Smart Alerts geared to active trading.

Important Note on DEX vs CEX Share: Industry tracking showed DEXs reached approximately 25% of global spot volume share in May 2025—a cyclical high. Therefore, treat “DEX vs CEX” shares as volatile and time-specific.

Getting Started with On-Chain Analytics as a Beginner Trader

To begin:

Choose a Tool: Start with DeFi Llama for overviews.

Learn Basics: Next, watch tutorials for Dune SQL or set up Nansen alerts.

Practice with ETH/USD: Then, track on-chain ETH flows to inform trades.

Combine Tools: Subsequently, use DeFi Llama for TVL and volumes, Dune for details, Nansen for alerts.

Stay Safe: Finally, cross-verify data and never invest more than you can lose.

These tools empower informed decisions, turning beginners into savvy traders.

Conclusion: Empower Your Trading with On-Chain Insights

On-chain analytics via Dune, Nansen, and DeFi Llama transforms crypto trading from guesswork to strategy. By leveraging factual blockchain data, traders can spot opportunities, mitigate risks, and stay ahead in 2025’s volatile markets. Whether analyzing DeFi TVL or tracking smart money, these platforms make expert-level insights accessible. Ultimately, start small, experiment with examples, and watch your trading improve. Remember, the blockchain never lies—use it to your advantage.

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