Flow Analysis: 5 Tools to Track Crypto Flows

CoinGecko just published an interesting article recommending several tools that can effectively support your market analysis. Personally, I mainly recommend using TradingView, BasedMoney and Coinalyze, but these tools can be worth exploring to broaden your perspective and perhaps uncover new confluence criteria.

For more tutorials on the tools I use in my own trading, I’ve set aside a dedicated section just for that on my blog

There are countless tools out there to analyze the markets, and there’s little point in piling them up just for the sake of it, because you quickly get lost. What matters is keeping in view the indicators that speak to you, the ones that lay out the situation clearly.

In this article, I’ll guide you a little in your choice, because I’ve pulled together a Top 5 of market analysis tools that’s bound to interest you!

Flow Analysis with Dune

Dune (formerly known as Dune Analytics) is a community-run data hub.

Dune lets any user query the blockchain using SQL databases.

The most popular dashboards are made available to you for free. You can search for specific crypto projects, including trending ones. You can also browse the dashboards of your favorite creators, and so on.

As with any tool, “without mastery, power is nothing!”

As with any tool, it’s essential that you take the time to practice, so that new leads come to light.

One of the best ways to get started on Dune is to explore the dashboards built by the platform’s most popular analysts. Since there’s a rating system dedicated to scoring dashboards, finding the highest-rated ones is fairly easy. You can also filter the data tables by trend or by a specific project.

Flow Analysis with Nansen

Nansen built its reputation by offering a highly reliable platform that lets you analyze blockchain data.

Unlike its decentralized, community-driven counterpart Dune, Nansen has an in-house team of experts who have built a suite of advanced trading tools you’ll struggle to find anywhere else.

For example, Nansen tracks more than 70 million wallets. That makes it easy to follow money flows and extrapolate signals and patterns that wouldn’t be obvious to spot on smaller databases.

Let’s say you want to track the wallets of NFT whales, because that will give you a considerable edge over those going in blind.

NFT Paradise is exactly that: a dashboard that delivers live updates of floor prices (Floor Price) from OpenSea. From there, you can use the profits dashboard to see the most profitable wallets in the NFT space, for example. That can spark a few ideas…

Nansen also lets you set up custom alerts (yes, even to flag the activity of a specific wallet).

You can also track gas usage and see what non-NFT whales are doing in the Ethereum ecosystem.

Of course, Nansen’s paid plan costs a fair amount, but there’s also a free version: Nansen Lite.

Flow Analysis with DefiLlama

DefiLlama is a multi-chain dashboard that tracks the most popular protocols by total value locked (TVL). Since TVL is one of the critical metrics for gauging a protocol’s popularity, I recommend a tool that lets you keep an eye on all of it. This metric shows us how much liquidity is actually locked in a protocol.

Where does the data aggregated by DefiLlama come from?

It pulls data from more than 80 Layer 1 blockchains, but not all the data is on-chain. In fact, the company aggregates its data by relying on behemoth data aggregators like CoinGecko. CoinGecko actively tracks more than 500 exchanges and 13,000 digital assets, making it one of the largest crypto data aggregators in the space.

It pulls data from more than 80 Layer 1 blockchains, but not all of the data it gathers is on-chain. In fact, the company aggregates its data by relying on data aggregators such as CoinGecko.

DefiLlama provides very intuitive dashboards that let you read TVL by protocol, airdrops, oracles, and so on. This dashboard offers plenty of filters you can use to explore the available data and turn it to your advantage.

Keep in mind that it’s only through practice that you’ll be able to draw interesting conclusions from such indicators. So I encourage you to turn this tool inside out to pull out whatever might be useful to you.

!!! One Last Thing !!!

If you’re planning to get into it, I recommend dYdX, a decentralized exchange, and for several reasons:

1. It’s a decentralized exchange run by its community
2. No KYC needed — you can trade futures without limits, anywhere in the world
3. The Testnet is spot-on! You can try your hand at trading without burning through your capital
4. Trading fees are ZERO below 100K in monthly volume.
5. It’s a profitable — and therefore viable — platform.

WARNING: If I recommend certain exchanges, it’s only because I use them regularly in my own trading for very specific reasons!

WARNING²: I don’t recommend that anyone store their cryptos on an exchange, whether it’s a DEX or a CEX — you’re never safe from a hack or ill-intentioned operators, no matter how good the exchange in question is.

WARNING² again: You remain solely responsible for your cryptos, so stay vigilant and don’t hesitate to put in place a rigorous security process that involves withdrawing all your cryptos from exchanges once your positions are closed.