7 On-Chain Metrics Every Crypto Trader Should Track

Technical analysis looks at price and volume on charts. On-chain analysis looks at what's actually happening on the blockchain. Wallet movements. Exchange flows. Network activity. This is data that stock traders don't have access to and most crypto traders completely ignore.

I've been tracking on-chain metrics for over three years now. Most of them are noise. But these seven consistently provide signal that improves trading decisions. None of them require paid subscriptions to access.

1. Exchange Netflow

What it is: The net difference between crypto flowing into exchanges and crypto flowing out of exchanges over a given period.

Why it matters: People send crypto to exchanges to sell it. People withdraw from exchanges to hold it. When more crypto is flowing in than flowing out (positive netflow), selling pressure is building. When more is flowing out (negative netflow), people are accumulating and removing supply from the market.

How to use it: Bitcoin saw a massive negative netflow of about 45,000 BTC in January 2026. This was one of the largest monthly outflows in years. The price rallied from $62,000 to over $70,000 in the following weeks. The on-chain data gave you a heads up before any chart pattern did.

Check this weekly. Sustained outflows over multiple weeks are bullish. A sudden large inflow (say, 20,000+ BTC in a single day) is a warning sign that a whale might be preparing to sell.

Where to track it: CryptoQuant (free tier shows daily data).

2. Stablecoin Supply on Exchanges

What it is: The total amount of stablecoins (USDT, USDC, DAI) sitting on exchange wallets, ready to be deployed.

Why it matters: Stablecoins on exchanges represent dry powder. Money waiting to buy. When stablecoin supply on exchanges is high and rising, there's a lot of buying power ready to enter the market. When it's low and falling, the buying power has been spent.

How to use it: In mid 2025, stablecoin supply on exchanges hit a 2 year high of about $25 billion. This preceded the rally in Q4 2025. Right now, it's around $20 billion, still healthy but lower than the peak.

Think of this as a fuel gauge. High stablecoin supply doesn't guarantee a rally, but it tells you the fuel is there if a catalyst appears. Low supply means even if the news is bullish, there might not be enough buying power on exchanges to sustain a move.

Where to track it: CryptoQuant and Glassnode both track this.

3. MVRV Ratio (Market Value to Realized Value)

What it is: The ratio between the current market cap and the "realized cap." The realized cap values each Bitcoin at the price it last moved, rather than the current price. So if someone bought BTC at $30,000 and hasn't moved it since, their coins contribute $30,000 to the realized cap, not the current market price.

Why it matters: When MVRV is above 1, the average holder is in profit. When it's well above 1 (say, above 2.5 to 3), most holders are sitting on large unrealized gains and are increasingly likely to sell. When MVRV drops below 1, the average holder is at a loss, historically indicating market bottoms.

How to use it: MVRV has correctly identified every major Bitcoin cycle top and bottom since 2012. It hit 3.7 before the 2021 peak and dropped to 0.85 at the 2022 bottom. As of February 2026, it's around 1.8, suggesting the market is profitable but not overheated.

I don't use this for daily trading. It's a cycle indicator. Check it monthly to gauge where we are in the broader market cycle.

Where to track it: Glassnode (free tier) and LookIntoBitcoin.com.

4. Active Addresses

What it is: The number of unique wallet addresses that made at least one transaction (send or receive) in a given period, usually daily.

Why it matters: Active addresses are a proxy for network usage. More active addresses means more people are using the network. Rising active addresses during a price increase confirms the rally has genuine participation behind it. Rising price with falling active addresses is a warning that the rally might not be sustainable.

How to use it: Ethereum's active addresses dropped 22% between November and December 2025, even while the price held relatively steady. The subsequent January dip caught many traders off guard, but the declining activity was flashing a warning sign for weeks.

For altcoins, this metric is even more useful. Before buying any altcoin, check its active address trend. If the token is pumping but active addresses are flat or declining, the pump is likely driven by speculation rather than genuine adoption. Those pumps tend to reverse hard.

Where to track it: Glassnode, Santiment, and IntoTheBlock.

5. Whale Transaction Count

What it is: The number of transactions above a certain value threshold (typically $100,000 or $1 million) in a given period.

Why it matters: Large transactions indicate institutional and whale activity. When the number of $1M+ transactions spikes during a dip, it means big players are buying the dip. When large transactions spike during a rally, it could mean distribution (whales selling into strength).

How to use it: During the February 4 2026 Bitcoin dip to $62,000, the number of transactions above $1 million jumped 40% above the 30 day average. Big money was buying. Bitcoin recovered to $68,000 within 10 days.

Context matters here. A spike in large transactions during a rally is ambiguous. It could be buying or selling. But a spike during a dip is almost always accumulation.

Where to track it: IntoTheBlock has the best whale transaction tracking. Their free tier shows daily data.

6. Funding Rates (Futures Markets)

What it is: In perpetual futures contracts, funding rates are periodic payments between long and short traders. When more traders are long than short, longs pay shorts (positive funding). When more traders are short than long, shorts pay longs (negative funding).

Why it matters: Extreme funding rates indicate crowded trades. When funding is very positive (say, above 0.05% per 8 hours), the market is overleveraged long. This creates the conditions for a long squeeze where a small price drop triggers cascading liquidations.

How to use it: Right before the January 2026 correction, Bitcoin funding rates on Binance hit 0.08% per 8 hour period. That's an annualized cost of over 70% to hold a long position. The market was screaming that too many people were betting on higher prices. The correction that followed liquidated over $800 million in long positions.

Extreme negative funding is the opposite signal. It means the market is heavily short, creating conditions for a short squeeze rally.

Where to track it: CoinGlass.com has the best funding rate dashboard. It's free and covers all major exchanges.

7. Supply in Profit Percentage

What it is: The percentage of the total Bitcoin (or any token) supply that was last moved at a price below the current price. In other words, how much of the supply is "in profit" right now.

Why it matters: When over 95% of supply is in profit, nearly everyone is sitting on gains. The incentive to take profits is high and the risk of a correction increases. When less than 50% is in profit, most holders are at a loss. The incentive to sell at a loss is low, and bottoms tend to form around these levels.

How to use it: At Bitcoin's 2021 peak, over 98% of supply was in profit. At the 2022 bottom, less than 50% was in profit. As of February 2026, about 78% of supply is in profit. Not euphoria territory, not capitulation territory. Middle ground.

This metric works best at extremes. When it's above 95% or below 55%, pay close attention. Between those levels, it's less actionable.

Where to track it: Glassnode tracks this for Bitcoin and Ethereum.

Putting It All Together

No single metric tells the whole story. The power comes from combining them. Here's my weekly checklist:

Bullish setup: Exchange outflows + rising stablecoin supply + MVRV below 2 + rising active addresses + whale buying during dips + neutral funding + supply in profit below 80%.

Bearish setup: Exchange inflows + declining stablecoin supply + MVRV above 3 + falling active addresses + declining whale transactions + extreme positive funding + supply in profit above 95%.

When four or more metrics align in one direction, I adjust my portfolio accordingly. This doesn't replace risk management or position sizing. But it gives me a directional bias backed by data that most traders aren't looking at.

On-chain metrics aren't a crystal ball. They're a weather forecast. They tell you whether conditions favor sunshine or storms. What you do with that information is up to you. But ignoring it entirely means you're trading blind while free data is sitting right there waiting to be used.