On-chain analysis is a method used to study blockchain data in order to understand market behavior, identify trends, and make informed decisions in the crypto ecosystem. Unlike technical analysis, which focuses on price and volume charts, on-chain analysis looks at deeper metrics like token circulation, wallet activity, asset accumulation, and market liquidity.

It offers key benefits such as full market transparency, real-time tracking of capital flows, and insights into the health of DeFi projects through indicators like Total Value Locked (TVL) and hash rates. This method also helps detect market cycles, revealing optimal buying and selling points.

When choosing an on-chain analysis platform, users should consider factors like data accuracy, user-friendly visuals, advanced tools, and affordability.