Thanks to the transparent, public and anonymous nature of blockchain data it is very easy for anyone to retrieve and scrutinise large amounts of data that can be used to inform decision-making.
The most important crypto data points to look at
Market Data:
Price History: Analyze the cryptocurrency's historical price trends and performance. Look for volatility, adoption rate, and market capitalization.
Trading Volume: Consider the daily trading volume of the cryptocurrency. Higher volume indicates greater liquidity and investor interest.
Exchange Listings: Where is the cryptocurrency traded? Are there reputable and secure exchanges available?
Regulation: Is the cryptocurrency subject to any regulatory scrutiny or restrictions? What potential impact could regulations have?
On-Chain Data:
Active Addresses: Monitor the number of active addresses on the blockchain. A higher number indicates more network activity and potential adoption.
Transaction Volume: Analyze the on-chain transaction volume to gauge the real-world usage of the cryptocurrency.
Developer Activity: Track the development activity on the project's Github repository. Is the codebase actively maintained and updated?
Smart Contract Audits: If the cryptocurrency utilizes smart contracts, have they been audited by reputable security firms?
Etherescan, the block explorer for Ethereum, is an excellent provider of on-chain data for Ethereum’s mainnet, but many crypto traders and investors prefer to use data aggregators or analytics providers for their on and off-chain data needs.
Data Aggregators:
Coingecko and Coinmarketcap are leading platforms for cryptocurrency data and information, but they each have their own strengths and weaknesses:
Market Coverage:
- Coinmarketcap: Tracks over 25,500 cryptocurrencies, offering the most comprehensive coverage in the market.
- Coingecko: Tracks over 12,550 cryptocurrencies, focusing on verified and reputable projects.
Data Presentation:
- Coinmarketcap: Emphasizes simplicity and ease of use. Charts and data are clearly presented, making it beginner-friendly.
- Coingecko: Offers more advanced data analysis tools and visualizations, catering to experienced users.
Additional Features:
- Coinmarketcap: Provides news feeds, educational resources, and price alerts.
- Coingecko: Includes on-chain analytics, portfolio tracking, and sentiment analysis.
Reputation and Transparency:
- Coinmarketcap: Has faced criticism for alleged listing fees and manipulation in the past.
- Coingecko: Emphasizes transparency and independent data gathering.
Ultimately, the best platform for you depends on your needs:
- For beginners: Coinmarketcap's simplicity and extensive coverage might be a good starting point.
- For experienced users: Coingecko's advanced features and in-depth analysis could be more valuable.
- For transparency and trust: Coingecko's reputation might be more appealing.
Don't rely solely on one platform: Use both Coingecko and Coinmarketcap to get different perspectives and insights.
If you want to go even deeper into crypto data, you can check out these data analytics providers in the crypto space.
Data Analytics:
Dune Analytics:
- Strengths: User-friendly interface, large community of analysts creating dashboards, free for basic functionalities.
- Focus: On-chain data analysis and visualization, DeFi protocols, NFTs.
- Weakness: Limited data coverage compared to some competitors.
Flipside Crypto:
- Strengths: Earn rewards for contributing analytics and participating in bounty programs, community-driven focus.
- Focus: On-chain and off-chain data analysis, focusing on specific projects and themes.
- Weakness: Limited free access to data and tools, requires participation in bounty programs.
Bitquery:
- Strengths: Extensive API access, comprehensive data coverage across multiple chains, powerful querying language.
- Focus: Enterprise-grade solutions for businesses and developers, offering paid plans with various features.
- Weakness: Steeper learning curve compared to some platforms, less user-friendly interface.
The Graph:
- Strengths: Decentralized platform, open-source protocol, wide range of applications and integrations.
- Focus: Subgraph development for specific data queries, caters to developers and analysts building custom tools.
- Weakness: Requires technical knowledge for subgraph development, not as user-friendly for beginners.
Covalent:
- Strengths: Rich historical data sets, multi-chain support, focus on developer tooling and APIs.
- Focus: Providing data infrastructure for developers and applications, offering various paid plans.
- Weakness: Less emphasis on user-friendly dashboards and visualizations, mainly developer-oriented.
Kaiko:
- Strengths: Real-time market data, institutional-grade analytics, focus on professional traders and investors.
- Focus: Advanced trading tools and market insights, offering paid subscriptions with tailored features.
- Weakness: High cost compared to other platforms, less accessible for individual users.
Messari:
- Strengths: In-depth research reports, market data aggregation, investor tools and resources.
- Focus: Comprehensive cryptocurrency market analysis, providing insights for various user groups.
- Weakness: Limited on-chain data analysis capabilities compared to some platforms.
Choosing the right platform depends on your needs. For basic on-chain analysis and dashboards: Dune Analytics or Flipside Crypto could be good options. For developers building custom data tools: The Graph or Covalent might be suitable. For professional traders and investors: Kaiko could offer valuable insights. For comprehensive market analysis and research: Messari could be a good choice.
