The Only Crypto On-Chain Metrics You Need
Here's a clear, practical guide to the on-chain metrics that actually help you make better crypto trading decisions.
You’re refreshing the charts every 10 minutes, hoping price tells you something it just can’t.
Stop.
The price of Bitcoin or any cryptocurrency is only one part of the trading picture, and the danger of focusing on a single aspect is that you miss out on making better buy or sell decisions.
It could even potentially lead to the destruction of your entire portfolio. That sounds very fatal, but this is crypto; all it takes is one tap to make or break your trading goal.
How do you make the switch from only focusing on price to thinking and doing more big-picture trading? The 13 metrics outlined in this post will help.
I’ve broken down each crypto on-chain metric, explaining what they mean and how to use them to decide when to buy, sell, or hold.
Let’s go.
Key Crypto On-Chain Metrics and Where to Find Them
Please Note:
- Most of these platforms (Glassnode, CryptoQuant, CoinMetrics, TradingView, DeFiLlama, Santiment) offer dashboards, charts, and historical data for both Bitcoin and other major blockchains.
- For deeper analysis, official documentation and metric glossaries from these analytic sites are recommended for definitions and data granularity.
- Some platforms provide free tiers, but more advanced or real-time data may require a subscription.
Explained: Crypto On-Chain Metrics That You Actually Need To Focus On (For More Bags and Less Rekts)
1. Market Value to Realised Value (MVRV)
Market Value to Realised Value (MVRV) helps you understand whether the market is currently overvalued or undervalued relative to the cost basis of holders.
An MVRV of more than 1 means coins, on average, are trading above the average price they were acquired at, so holders have unrealised profits. A very high MVRV suggests the market may be overvalued and due for a correction since many holders could sell to make gains.
An MVRV of less than 1 means coins are trading below the average acquisition price, so holders are at an unrealised loss. This condition may indicate undervaluation and possible buying opportunities, as selling pressure might be lower.
When MVRV = 1, the market is roughly at break-even, and holders are neither in significant profit nor loss.
How to Calculate MVRV
The Market Value to Realised Value (MVRV) ratio is calculated by:
Dividing the total market value of a cryptocurrency by the total realised value of that cryptocurrency.
- Market Value (market cap): Total current value of all coins/tokens in circulation, calculated as current price × total supply.
- Realised Value (realised cap): Total value of coins based on the price they last moved (or were bought). It reflects the "cost basis" of all coins, which means what holders actually paid on average.
How to Use MVRV to Decide When to Buy, Sell, or Hold
Tips for using Market Value to Realised Value (MVRV):
- MVRV is best used together with other metrics like Net Unrealised Profit/Loss (NUPL), Spent Output Profit Ratio (SOPR), technical indicators, and broader market fundamentals.
- It helps spot market tops and bottoms historically, acting as an early warning when market profit-taking may begin or when undervalued conditions prompt buying interest.
- MVRV fluctuates constantly as price and realised cap change daily; it’s useful for assessing market sentiment over medium to long term rather than short-term noise.
2. Exchange flows (inflows and outflows)
Exchange flows (inflows and outflows) track the movement of cryptocurrencies onto and off trading exchanges, providing signals about market sentiment and potential price direction for retail crypto traders.
- Inflows: When crypto assets are transferred onto exchanges from private wallets or other platforms. This usually means holders are moving funds in to sell or trade.
- Outflows: When crypto assets are moved off exchanges into private wallets or cold storage, implying holders want to keep their assets long-term or reduce trading.
How to Use Exchange Flows to Decide When to Buy, Sell, or Hold
Tips for using Exchange Flows:
- Combine exchange flows with price action and volume for better timing decisions.
- Use tools like Glassnode, CryptoQuant, or CoinMetrics to monitor inflows/outflows in real time.
- Remember inflows signal potential selling, not automatic price drops, so consider broader market context before acting.
- Outflows reflect investor confidence and patience, which tends to precede upward price moves.
3. Net Unrealised Profit or Loss (NUPL)
Net Unrealised Profit or Loss (NUPL) is used to measure whether the crypto market as a whole is sitting on unrealised gains (potential profit) or losses (potential loss) by comparing current prices with the price at which coins were last moved.
In simple terms, it tells you if most holders are “in the green” or “in the red”.
- NUPL > 0: On average, holders are in profit (“paper gains”).
- NUPL < 0: On average, holders are at a loss (“paper losses”).
How To Calculate Net Unrealised Profit or Loss (NUPL)
Net Unrealised Profit or Loss (NUPL) is calculated by:
Subtracting the Realised Capitalisation from the Market Capitalisation, then dividing that result by the Market Capitalisation.
- Market Cap: Current price × total coins in circulation.
- Realised Cap: Value based on last transaction price × total supply
NUPL Sentiment Zones and Market Signals
How to Use NUPL to Decide When to Buy, Sell, or Hold
- Buy: When NUPL is deeply negative or near historic lows (market may be bottoming).
- Hold: When NUPL is in mid-range and no other strong signals exist.
- Sell/Reduce: When NUPL enters “Euphoria/Greed” territory, the market is overheating, and the risk of corrections grows.
Tips for Using Net Unrealised Profit or Loss (NUPL)
- NUPL works best in combination with Market Value to Realised Value (MVRV), exchange flow metrics, and technical analysis.
- NUPL is especially useful for identifying major market cycle extremes, not for timing short-term trades.
4. Spent Output Profit Ratio (SOPR)
Spent Output Profit Ratio (SOPR) helps you read the "mood" of the market by showing whether coins being moved on the blockchain are being sold at a profit or a loss.
How to Calculate Spent Output Profit Ratio (SOPR)
SOPR is calculated by:
Dividing the selling price of coins by the price at which those coins were originally acquired (on-chain).
What SOPR Numbers Mean:
- SOPR > 1: Coins are, on average, being sold at a profit. Sellers are making money.
- SOPR < 1: Coins are, on average, being sold at a loss. Sellers are accepting losses.
- SOPR = 1: On average, sellers break even, selling coins for the same price they paid.
How to Use SOPR to Decide When to Buy, Sell, or Hold
Tips for Using Spent Output Profit Ratio (SOPR)
- Use SOPR alongside other metrics, such as MVRV, NUPL, and exchange flows, for a deeper market view
- Focus on SOPR trends, not just singular numbers or values. A sudden shift can signal changes in market sentiment.
- SOPR offers a real-time look into what market participants are actually doing with their coins, not just price action alone.
5. Funding Rates
Funding Rates are a particularly critical on-chain metric for crypto perpetual futures traders.
They represent periodic payments exchanged between traders who are “long” (expecting the price to rise) and “short” (expecting the price to fall), ensuring that the price of perpetual futures aligns closely with the spot market price.
How to Calculate Funding Rates
Funding Rate is calculated based on the price difference between the perpetual futures and the spot market.
If the perpetual price is higher than the spot price → Longs pay Shorts
If the perpetual price is lower than the spot price → Shorts pay Longs
Please note that Funding rates typically reset every 8 hours, but this timing may vary by exchange and contract type.
How to Use Funding Rates to Decide When to Buy, Sell, or Hold
6. Miner Outflows
Miner Outflows track the amount of cryptocurrency (e.g., Bitcoin) being transferred out of miners’ wallets.
Since miners must cover operational costs (such as electricity), they regularly sell some of their coins. However, spikes or sustained increases in miner outflows can signal unusual selling pressure.
- High miner outflows suggest miners are selling more coins into the market, increasing supply and possibly pushing prices down (bearish signal).
- Low or decreasing miner outflows indicate miners are holding or selling less, which reduces selling pressure and may support price appreciation (bullish signal).
How to Calculate Miner Outflows
It’s calculated by tracking on-chain activity from known miner addresses and summing all the coins they send out.
How to Use Miner Outflows to Decide When to Buy, Sell, or Hold
Tips for Using Miner Outflows
- Miner outflows alone don’t guarantee price direction, but when combined with metrics such as hash rate, exchange inflows (if miners send coins to exchanges) and miner position indices, they provide stronger signals.
- Sudden large outflows to exchanges often precede price corrections as miners realise profits or cover costs.
- Sustained low outflows may indicate miners confidence in price appreciation or difficulty in selling amid low prices.
7. Hash Rate
Hash Rate measures the computational power used by miners to process and validate transactions on a blockchain network, such as Bitcoin.
Hash rate is measured in hashes per second (H/s) and typically expressed with large-scale units like
- gigahashes (GH/s = billions)
- terahashes (TH/s = trillions)
- exahashes (EH/s = quintillions)
Hash rate fluctuates based on miner participation, hardware upgrades, electricity costs, and mining difficulty adjustments, which the network automatically changes to maintain consistent block times.
How to Use Hash Rate to Decide When to Buy, Sell, or Hold
8. Active Addresses
Active Addresses measures the number of unique blockchain addresses that are active on the network during a specific period (daily, weekly, or monthly).
Unlike simply counting transactions, it counts unique addresses, so multiple transactions from the same address within the period are counted as one. It includes various activities, such as sending/receiving funds, mining/staking rewards, voting, or any protocol-defined ledger changes.
An address is considered active if it participates in any transaction as either a sender or receiver.
- High active address count indicates strong user engagement and network usage.
- Low counts suggest lower user activity or diminished network interest.
How to Use Active Addresses to Decide When to Buy, Sell, or Hold
Tips for Using Active Addresses
- Spikes in active addresses often occur during periods of price volatility, reflecting heightened investor activity, such as panic selling or FOMO buying.
- Active addresses should be interpreted alongside other metrics (price trends, volume, outflows) for deeper insight.
- This metric does not directly measure holding addresses or whale activity, but overall user engagement.
9. Transaction Volume
Transaction Volume in crypto refers to the total amount of a cryptocurrency traded, either in coins/tokens or USD value, within a specified period, such as daily, weekly, or monthly.
- High volume indicates that many participants are trading, resulting in greater market liquidity and stronger market interest.
- Low volume can suggest a lack of interest or market inactivity, possibly leading to volatile price swings or wider spreads.
How to Use Transaction Volume to Decide When to Buy, Sell, or Hold
10. Supply Distribution
Supply Distribution in crypto refers to how a cryptocurrency’s total supply is spread among different holders or entities such as investors, founders, team members, exchanges, or large “whales” and how these tokens are unlocked for trading or vested over time.
It shows the concentration or decentralisation of token ownership. For example:
- Are tokens mostly held by a few addresses (high concentration)?
- Or are they broadly distributed across many holders (decentralized)?
Fair and balanced supply distribution is critical to avoid manipulation, excessive volatility, or centralisation risks.
How to Use Supply Distribution to Decide When to Buy, Sell, or Hold
- Before large token unlocks or vesting periods: Consider selling or reducing position since the new supply may increase selling pressure.
- If distribution is highly centralised in whales or founders: Exercise caution around price fluctuations and news, as large holders can manipulate the price.
- When distribution is broad and tokens are mostly in public hands: This is generally bullish and more sustainable in terms of price, so consider buying or holding.
- Monitor for sudden large transfers or changes in whale holdings: These often precede big market moves and can be used as a warning or entry signal depending on direction.
11. Total Value Locked (TVL)
Total Value Locked (TVL) measures the total U.S. dollar value of digital assets (cryptocurrencies, stablecoins, tokens) locked or staked in a particular DeFi protocol, blockchain network, or decentralised application (dApp) through smart contracts.
How to Calculate Total Value Locked (TVL)
Total Value Locked (TVL) is calculated by:
Multiplying the amount of each asset locked in a DeFi protocol by its current market price, then summing the values of all locked assets.
How to Use TVL to Decide When to Buy, Sell, or Hold
12. Network Value To Transactions Ratio (NVTR)
Network Value to Transactions Ratio (NVTR) compares a cryptocurrency’s market capitalisation (network value) to its transaction volume over a specific period, usually daily or weekly.
Think of NVT as the crypto equivalent of a Price-to-Earnings (P/E) ratio: it compares the price investors pay for the entire network to how much actual value is transacted (used) on that network.
How to Calculate Network Value to Transactions Ratio (NVTR)
Network Value to Transactions (NVT) Ratio is calculated by:
Dividing a cryptocurrency’s market capitalisation by its daily on-chain transaction volume (in USD).
How to Interpret NVTR
How to Use NVT for Buy, Sell, or Hold Decisions
- Buy: When the NVT ratio is low or falling, it indicates strong transaction activity relative to price, suggesting undervaluation and potential price appreciation ahead.
- Sell: When the NVT ratio is very high or rising sharply, it signals the network’s price has outpaced its utility, risking a price correction or bubble burst.
- Hold: When the NVT is stable or moving within moderate ranges, it indicates a balanced market. Waiting for stronger signals from NVT trends or complementary indicators is advisable.
Tips for Using Network Value To Transactions Ratio (NVTR)
- NVT is best used alongside other metrics like volume trends, MVRV, or exchange flows, to confirm market cycles and momentum.
- It can be applied to many blockchains, but is especially popular and reliable for large networks like Bitcoin and Ethereum.
- Sharp divergence between price and transaction volume (extremely high NVT) is often a precursor to market tops or corrections.
13. Spent Outfit Profit Ratio (SOPR)
Spent Output Profit Ratio (SOPR) is used to understand whether holders moving coins are selling them at a profit or a loss relative to their original acquisition price.
SOPR compares the USD (or fiat) value of coins at the time they are spent (sold or moved) to their value when they were last acquired (bought or received).
How to Calculate SOPR
SOPR is calculated by:
Dividing the price at which a coin was sold (realised value) by the price it was bought or received (cost basis).
- If SOPR > 1: Coins moved in this period are, on average, sold at a profit.
- If SOPR < 1: Coins are being sold at a loss.
- If SOPR = 1: Coins are breaking even — selling price equals buying price.
How to Use SOPR to Decide When to Buy, Sell, or Hold
Tip for using Spent Output Profit Ratio (SOPR)
- It is important to combine SOPR with other on-chain data and technical analysis for more reliable trade decisions.
Final Word
After reading this, if your whole strategy is still “buy low, sell high”?
Sigh.
I will admit, though, that “buy low, sell high” is a classic, but now you have a whole toolkit to go beyond the basics. Use it.
Good luck with your trades!
🔔One last thing, get your free on-chain metrics tracker here:
Josephine Inika
FAQs
1. What are on-chain metrics? They’re blockchain-based data points that show real user behaviour, like wallet activity, exchange flows, or profit-taking. Unlike price charts, they show what’s happening under the surface.
2. Do I need to be a pro to use on-chain data? No. You just need to understand a few key metrics and apply them to your trading timeframe. This article breaks down the most useful ones.
3. Where can I check on-chain metrics? Free and paid tools include Glassnode, CryptoQuant, IntoTheBlock, and Token Terminal. Many exchanges also integrate simplified versions.
4. Which metric is best for spotting market tops? MVRV, NUPL, and Exchange Inflows are strong indicators when combined. No single metric should be used on its own.
5. Are these metrics useful for altcoins too? Yes, especially active addresses, transaction volume, supply distribution, and TVL. Just make sure the project has enough on-chain activity to analyse.
Disclaimer: This article was written to provide guidance and understanding. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.
