On-chain analytics Bitcoin
A Guide to On-Chain Metrics Bitcoin — data directly from the blockchain. What do active addresses and transaction volumes show? NVT Ratio And SOPR, and how a trader can read these network health indicators BTC.
SOPR
Sales profitSpent Output Profit Ratio. Above 1, coins are sold at a profit. Below 1, at a loss. Capitulation signal: SOPR below 1 for several days in a row.
Transaction volume
$USDTotal volume BTC, transferred online in 24 hours. An increase in volume while the price falls is a sign of distribution.
Active and new addresses
24 hoursUnique addresses in transactions per day and addresses that received the first time Bitcoin. Correlates with the influx of new users into the network.
Average commission
USDAverage transaction fee on the network BitcoinHigh fees mean high mempool load and competition for block space.
NVT Ratio
P/E cryptsNetwork Value to Transactions. Analogue P/E For BitcoinAbove normal—the network is overvalued relative to activity. Below normal—it's undervalued.
Mempool Size
LoadingThe size of the pool of unconfirmed transactions. It grows during periods of high demand for block space and high activity.
Why does a trader need on-chain analytics? Bitcoin?
Blockchain Bitcoin Completely transparent—every transaction has been recorded in a public ledger since 2009. On-chain analytics is the interpretation of this data to understand the behavior of real market participants: miners, long-term holders, exchanges, and ordinary users. Unlike price charts, on-chain data is not manipulated—it cannot be faked.
SOPR (Spent Output Profit Ratio) is one of the most powerful on-chain indicators. In January 2019, SOPR briefly dropped below 1 as traders sold at a loss. This marked the bottom of the bear market before a rally from $3,200 to $13,800. In May 2021, during the correction, SOPR It stayed below 1 for several days, signaling retail participants' capitulation. A recovery followed within 2–3 weeks.
An increase in the number of active addresses while the price rises is a healthy bull market. A price increase with stagnant network activity is a sign of a speculative bubble without real fundamental demand. NVT Ratio, analogue P/E For Bitcoin, allows us to compare the market valuation of the network with the actual economic activity in it.
Key on-chain metrics and what they mean
| Metrics | What does it measure? | Bullish signal | Bearish signal |
|---|---|---|---|
| SOPR | Profit/loss when moving coins | A little above 1 | Long below 1 |
| Active addresses | Network activity and engagement | They grow along with the price | Stagnate while growing |
| NVT Ratio | Network Evaluation vs. Utilization | Below the historical norm | Significantly above normal |
| Transaction volume | Economic activity on the network | It grows when the price falls | A sharp surge on ATH |
Influence Spot Bitcoin ETF on-chain metrics
After launch Spot Bitcoin ETF In January 2024, a significant portion of the turnover went “offline”: funds (BlackRock, Fidelity, ARK) rebalance positions through Coinbase Custody, and these movements are not reflected in standard on-chain metrics. In custody ETF a significant portion of the circulating issue is locked up BTC, and these coins generate almost no activity on the network.
This structurally understates traditional metrics: the number of active addresses and transaction volumes are growing more slowly than would have been the case if the “pre-ETF-naya" network with the same demand. Therefore, analysts Glassnode And CryptoQuant introduced "ETF-adjusted" versions of metrics, where the movements of custody addresses are taken into account separately, are no longer accurate in comparing cycles before and after 2024 using raw numbers.
In parallel after Ordinals And Runes in 2023–2024 on the network Bitcoin The volume of non-monetary transactions has increased. This inflates the number of transactions and fees, but does not reflect economic activity. BTCModern on-chain analysis requires filtering by transaction type.
Historical Events and the Reaction of On-Chain Metrics
| Period | Event | On-chain signal | Price reaction |
|---|---|---|---|
| January 2019 | Bear market bottom | SOPR below 1 consistently | $3,200 → $13,800 |
| March 2020 | COVID-19 collapse | Surrender, SOPR 0.94 | $4,800 → $29,000 |
| May 2021 | Mining ban in China | SOPR below 1 for several weeks | $57K → $30K |
| November 2022 | Collapse FTX | Active addresses +22% | Bottom $15.7K → rebound |
| January 2024 | Launch Spot ETF | A surge in the volume of transfers to exchanges | $42K → $73K |
| April 2024 | Fourth halving + Runes | Record commissions for tx | Sideways until Q4 |
On-chain data collection methodology
1. Source. All metrics are built from a public blockchain. Bitcoin, starting with the genesis block on January 3, 2009. Full nodes and indexers are used (Electrs, Esplora).
2. Clustering. Addresses are grouped by heuristics: "common input ownership" (if addresses are part of the same transaction, they belong to the same owner), and change reuse. This is how categories are distinguished: exchanges, ETF custodians, miners, long-term holders.
3. Filtration. Modern platforms (Glassnode, CryptoQuant, Coin Metrics) separates "entity-adjusted" metrics from raw ones: internal exchange movements, dusts, are excluded, Ordinals/Runes- transactions for monetary metrics.
4. Update. Most metrics are recalculated after each block (~10 minutes). Aggregates (24h) are updated continuously. Snapshots as of 00:00 UTC used for daily charts.