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On-chain data product insights: Comparative analysis of Nansen, Dune Analytics and LookOnChain
Author: Kyle Liu, Investment Manager at Bing Ventures
Introduction
In today’s rapidly developing blockchain field, on-chain data has become a core asset, and its ecological status is increasingly important. From token trading to NFT minting, every detail of on-chain activities is drawing a full picture of value flow. In this data-driven era, on-chain data is not just a collection of numbers, but a true reflection of market dynamics, user behavior and even the health of the entire blockchain ecosystem.
Marketing tells us that consumer behavior analysis has a profound impact on the future trend of the overall market. Similarly, in the on-chain world, in-depth analysis of user behavior and insights are of immeasurable value to market participants. Nansen, Lookonchain, and Dune Analytics, as leading crypto data analysis projects, not only provide users with in-depth on-chain data analysis, but are also an indispensable part of blockchain development. This study will explore the characteristics of these three platforms and their significance to the development of blockchain technology.
The importance of on-chain data analysis
On-chain data reflects user behavior. In the blockchain world, on-chain data can represent individuals, institutions, exchanges, market makers, and all other identities involved in on-chain activities. On-chain data analysis can provide insights into market trends and user behavior, discover potential opportunities and risks, improve operational efficiency and reduce costs, support decision-making and strategic planning, and enhance security and risk control. Through in-depth analysis of on-chain data, retail investors or institutions can at least obtain the following benefits:
Source: Bing Ventures
Typical functions of Web3 data tools
Nansen, Dune Analytics and LookOnChain, as leaders in this field, each have their own characteristics and provide users with unique and in-depth insights. An in-depth analysis of these tools not only reveals their respective strengths and limitations, but also explores future trends in the data market and their impact on investors.
Nansen — Pioneer of on-chain behavioral analysis
Source: Nansen
Nansen provides an in-depth understanding of the crypto market through behavioral analysis of over 120 million wallet addresses. It mainly focuses on token holdings, exchange inflows and outflows, and smart contract dynamics. Through its complex label system and early warning system, Nansen enables users to quickly identify market trends and capture investment opportunities in a timely manner.
In-depth analysis at the token level
Nansen’s analysis at the token level covers multiple dimensions, including Smart Money’s position changes, exchange capital flows, and the overall market performance of the token. This comprehensive perspective allows investors to understand market dynamics from multiple perspectives and make more accurate investment decisions.
Source: Nansen
Actual operation
Source: Nansen
We start from the market level, look at the trading situation of smart money on that day, and infer their trading thinking (large purchases: potential speculation opportunities; large sales: potential selling opportunities), so as to discover potential projects for investment. If there are unfamiliar projects, we can conduct more in-depth research.
Source: Nansen
In the world of cryptocurrency and blockchain, smart money operations are often seen as one of the indicators of market trends. Different smart money groups, such as Flash Boys, funds and other large holders, have their own unique trading patterns and strategies. A deep understanding of these patterns and strategies can provide investors with valuable trading signals and market insights.
Flash Boys usually pursue short-term profits, and their trading strategies are often based on technical analysis and market sentiment rather than long-term fundamental analysis.
Watching Flash Boys trades can provide clues about short-term market trends. For example, if Flash Boys purchases a large amount of a certain token, this could mean that the token has the potential to rise in the short term.
Since Flash Boys’ strategies are often based on short-term trends, following their trades may carry higher risks. Investors need to ensure that their trading strategy matches their risk tolerance.
Funds and other large holders often adopt more conservative and long-term investment strategies. Their trading decisions or biases are based on in-depth market research and fundamental analysis.
Observing a fund’s trading can provide clues about mid- to long-term market trends. For example, if multiple large funds start accumulating holdings of a token, this could mean that the token has the potential for long-term growth.
Funds’ investment strategies tend to be more robust and systematic. By analyzing the trading patterns of funds, investors can learn and refer to their investment strategies to optimize their investment portfolios. But Crypto fund investments are often accompanied by regular unlocking of tokens. Therefore, the fund’s positions and transfers cannot reflect the market’s judgment on the trend of a specific currency to a certain extent. Investors need to be more cautious.
Smart Contract and Liquidity Provider Analysis
Nansen shows users key indicators such as annualized yield (APY) by tracking the trading pairs of popular contracts and liquidity providers (LPs). This data is crucial for assessing the potential value and risks of DeFi projects.
Source: Nansen
Labeling system and early warning mechanism
Nansen’s labeling system and early warning mechanism provide timely feedback on market dynamics. By tracking specific tags and wallet addresses, users can obtain important market information in a timely manner and quickly adjust investment strategies.
Source: Nansen
Actual operation
Source: Nansen
Nansen AI’s early warning system provides cryptocurrency investors and project parties with a powerful tool to help them capture market dynamics, manage risks and optimize strategies in a timely manner.
Supporting multiple public chain networks means investors can track the dynamics of multiple markets and gain a more comprehensive market perspective.
Flexibility
Whether it is TOKEN or NFT, users can choose and track according to their own needs, providing great flexibility.
Users can add the wallet address of smart money and keep abreast of its transaction dynamics to capture market opportunities or avoid risks.
Through the numerous label indicators provided by @nansen_ai, users can set early warning conditions more accurately to ensure the relevance and accuracy of early warnings.
Set early warnings based on the transaction amount to help users capture large transactions and important market trends in a timely manner.
Source: Nansen, Telegram
Early warnings can be connected to TG (Telegram) and DC (Discord) to ensure that users can receive timely warning information on multiple platforms.
Users can easily customize and set warning conditions without complicated operations.
The early warning system provides strong selectivity and operability, and users can flexibly configure it according to their own needs.
Generally speaking, the current services provided by Nansen’s AI system are relatively similar to Bot, which is based on tracking of specific address/token related information input in advance. The user experience also adopts a push form based on Telegram similar to Bot. At present, the degree of AI participation in intelligent analysis is relatively low, mainly related push based on on-chain activities. From the current perspective, it still lacks some innovation and competitiveness. Nansen may develop efforts in related products in the future.
Dune Analytics — A data-driven market lens
Dune Analytics provides powerful data analysis capabilities based on SQL, covering multiple aspects of the cryptocurrency and DeFi fields. Its community-driven model and open data access policy make it an extremely dynamic analytics platform.
Source: Dune
Community Sharing and Collaboration
Dune’s community culture encourages data sharing and collaboration, providing users with a continuously evolving data analysis environment. Users can easily access and modify other people’s analytical dashboards, creating new perspectives that adapt to market changes.
Powerful customization functions
Dune’s customization function allows users to adjust the way data is displayed according to their personal needs. This flexibility is one of Dune’s great strengths, making it an extremely adaptable tool, especially for advanced users with specific data needs.
In addition, the comprehensiveness of Dune Analytics is also an important reason for its popularity. It supports data analysis on multiple public chains and provides users with a comprehensive market perspective. No matter which project or area users care about, they can find detailed data and in-depth analysis on Dune.
Operability
Dune Analytics demonstrates its powerful functionality and user-friendly design in terms of operability.
Dune allows users to zoom in, full screen, and select any part of a chart, which provides users with a highly customized experience that enables them to view and analyze data according to their needs.
With the Fork feature, users can easily copy the entire data set to their own workspace. This design encourages users to explore and experiment, while also providing them with a safe environment to modify and innovate without affecting the original data set.
The Query feature provides users with the ability to view the code that implements the data set, which not only increases transparency but also allows experienced users to gain insight into where the data comes from and how it is processed.
Dune’s search functionality allows users to quickly find the project information they need, sorting by popularity, collections and release date. This greatly improves user productivity, allowing them to find and analyze relevant data more easily.
Dune encourages users to copy successful datasets via Forks and allows them to modify their code. This design lowers the barrier to entry for users because they can start with an existing dataset and then adapt it to their needs.
Source: Dune
Compared with Nansen, Dune’s advantage lies in its customizable design of relevant data. Users can make dashboards of the data they want based on the already open API interfaces, which is freer, more flexible, and more combinable. Currently, many projects will directly display/disclose the relevant transaction data and operation data of their projects on Dune to provide data reference for users and investors. Nansen’s “modeled” data is more suitable for institutional users and novice users. In the later stage, Dune can launch a reward mechanism to incentivize developers who provide dashboards to help the development of the entire Dune ecosystem.
LookOnChain — Intuitive market dynamics tracking
LookOnChain is known for its intuitive Twitter platform and in-depth tracking of whale wallets. It provides users with a unique perspective to observe market dynamics, especially in tracking the behavior of large investors.
Source: X
Whale Oriented Strategy
By following important whale wallets, LookOnChain enables users to quickly grasp market trends. This strategy is particularly suitable for investors who wish to follow market leaders. Through LookOnChain, investors can not only obtain the transaction records of these wallets, but also gain an in-depth understanding of the strategies and motivations behind them. Information like this can be very helpful for investors looking to succeed in the cryptocurrency market. After all, in a market full of variables, having the right information and strategies is the key to success. Therefore, LookOnChain provides investors with a unique opportunity to better understand the market and make informed investment decisions.
Connect to Debank for deeper analysis
LookOnChain provides a more detailed analysis of whale wallets by connecting to DeBank. This in-depth analysis helps users understand the specific strategies and market movements of these large wallets.
Each of the three platforms shows different aspects of on-chain data analysis. Nansen provides users with a comprehensive market perspective with its in-depth wallet behavior analysis and real-time data updates. Dune Analytics provides a collaborative and innovative environment for data analysts and programmers with its powerful customization capabilities and community sharing culture. LookOnChain enables ordinary users to quickly understand market trends through a simple and intuitive way.
Comparative analysis based on multi-dimensional business evaluation model
The data track is one of the essential infrastructures in the Crypto industry. The data analysis platform can not only assist investors in making investment decisions, but also provide assistance for AML and crime tracking. On-chain behavioral analysis is one of the selling points of data-based platforms. The advantage is that potential investment opportunities can be discovered at an early stage. The disadvantage is the risk caused by the uncertainty of investment opportunities. In any case, the information provided by on-chain data should be used as auxiliary information for decision-making. Investors need to accurately implement their operations based on the actual situation and their own judgment.
Overview of Web3 data tool product monetization models
Nansen: Institutional think tank type, more elite
Business profitability method: In order to cover all types of users, Nansen has launched three levels of service, which are US$150 (standard level), US$1,500 (VIP level) and US$2,500 (Alpha level) per month. By paying, you can get research reports and project analysis produced by the Nansen team, and have the opportunity to contact Nansen’s professional research analysts.
Source: Nansen
Token economic model: No tokens have been launched yet.
Dune Analytics: Developer community type, more fun
How the business can be monetized: Regular users can access blockchain data, create dashboards, share charts and fork existing queries for free. When they need to run multiple queries at once, skip query execution queues, export results, keep information private, or remove watermarks, they need to upgrade to “Dune Plus” or “Dune Premium,” which are currently priced at $349 and $389 respectively. USD/month. In addition to more powerful basic functions, it also provides more API calls per minute, which helps deepen the connection between enterprises and customers and can transform the platform from an external data provider to part of the customer’s core infrastructure.
Source: Dune
Token economic model: No tokens have been launched yet.
LookOnChain: Follow hot spots for greater communication effect
Business profit model: LookOnChain currently provides free consulting to users within the X platform, and profit models include paid user groups and exchange-related user referrals.
Token economic model: No tokens have been launched yet.
From the traditional multi-dimensional business evaluation model
When comparing these three blockchain data analysis tools, we found that Nansen, Dune Analytics and LookOnChain each showed significant advantages and limitations in different dimensions. Nansen leads in data depth and multi-chain support, Dune Analytics excels in user experience and community-driven content innovation, and LookOnChain has unique advantages in providing intuitive market insights.
Technological Innovation
Nansen’s technological innovation is reflected in its in-depth analysis capabilities of more than 120 million wallet addresses. Its core strength lies in its ability to comprehensively analyze token holdings and smart contract activity to provide users with a comprehensive view of the market. However, behind this technical prowess lies an over-reliance on tagged addresses, which can lead to blind spots for emerging or untagged addresses.
Dune Analytics has demonstrated its excellent SQL capabilities in data processing. This capability not only puts it in a leading position in the field of data analysis, but also provides the developer community with powerful custom tools, which is extremely rare in the market. We are very optimistic about this model.
The innovation of LookOnChain is its ability to directly track the trading dynamics of large investors (whale wallets). This is crucial to quickly capture market trends, especially in the extremely volatile cryptocurrency market.
Market Adaptability
Nansen demonstrates broad adaptability to the blockchain ecosystem by supporting multi-chain data analysis. However, this breadth may lead to a scattered focus, which affects the in-depth analysis of specific chains or market segments. We did find this shortcoming of Nansen when using it, and it was unable to follow up on the data analysis of hot sectors or narrative currencies in a timely manner.
Dune Analytics quickly adapts to market changes through its open community culture and easy-to-use interface design. This flexibility makes it the first choice for users who seek fast response and deep insights.
LookOnChain leverages the popularity of the Twitter platform to quickly adapt to market dynamics driven by social media. But this also brings the risk of over-reliance on a single platform.
user experience
The label system and early warning system provided by Nansen bring a highly personalized experience to users, but for beginners, the complex user panel still means a high learning curve.
Dune Analytics received high marks for user experience with its simple SQL interface and rich community content. Its user-friendliness not only appeals to technical users but also provides users from non-technical backgrounds with an easy-to-understand view of the data. It’s a win-win situation.
LookOnChain provides an excellent experience for non-technical users with its intuitive information presentation and simple user interaction. However, the depth and breadth of its information may sometimes be insufficient to satisfy more advanced users.
Business Model and Profitability
Nansen’s multi-level subscription service reflects its deep understanding of user groups in different markets. This differentiation strategy not only enhances its market coverage, but also brings it a stable revenue stream.
Dune Analytics has demonstrated a flexible business model by offering both a free service and a premium subscription option, a strategy that keeps the community active while also providing the potential for profit.
LookOnChain makes full use of its huge Twitter fan base as a supplement to its revenue sources, demonstrating its innovation in business models. However, the sustainability and stability of this model need to be further verified.
On-chain Data Service Evaluation Framework (ODTEF)
In view of the characteristics of the data analysis tools on the Web3 chain, we have further optimized the traditional multi-dimensional business evaluation model to make it more targeted. We will name this optimized model “Onchain Data Tools Analysis uation (ODTEF)”, which pays more attention to the characteristics of blockchain technology and the uniqueness of data tools in the Web3 environment. The main evaluation dimensions include the following aspects:
Evaluate the degree to which a tool decentralizes the data management and analysis process, including the distributed nature of data storage, processing, and access.
Whether analytical tools can provide real-time on-chain data monitoring and performance in data transparency and traceability.
Examine the tool’s ability to analyze smart contracts, as well as its degree of interaction and integration with on-chain resources (such as DeFi and NFT).
Focus on the protection of user privacy when tools process on-chain data, as well as data security in the Web3 environment.
Evaluate whether the tool’s business model incorporates token economics and how it leverages cryptocurrencies and token incentives to drive the ecosystem.
Nansen: A model of on-chain intelligence and in-depth analysis
Nansen excels in data integration and analysis, but its reliance on centralized data warehouses weakens its decentralization potential in a Web3 environment. In the future, Nansen needs to explore more decentralized storage and analysis solutions to strengthen its leading position in decentralized data processing.
Nansen performs well in real-time on-chain data monitoring, especially in monitoring token liquidity and large transactions. However, in terms of data transparency, users’ understanding of data sources and analysis logic needs to be further strengthened.
The smart contract analysis functions provided by Nansen are relatively comprehensive, especially in analyzing DeFi projects and NFT markets. In the future, Nansen needs to continue to strengthen its in-depth integration with smart contracts to provide richer interactive analysis.
Nansen has demonstrated high standards when it comes to data security and privacy protection. However, with the development of the Web3 environment, Nansen needs to further strengthen its data processing and storage mechanism to better protect user privacy.
Nansen’s business model is primarily based on subscription services and has not yet extensively integrated token economics. Facing the future, Nansen may consider introducing a tokenized incentive mechanism to enhance user participation and ecosystem activity.
Dune Analytics: The Frontier of Community-Driven and Custom Analytics
Dune Analytics excels in providing decentralized data analysis, especially its community-driven data sharing and analysis model. However, there is still room for improvement in the degree of decentralization of data storage and processing.
Dune Analytics provides highly transparent data analysis and visualization, especially in community-created dashboards. This transparency and real-time nature brings deep market insights to users.
Dune Analytics provides a high degree of flexibility and customization for the analysis of smart contracts, but its depth and accuracy still need to be improved in some complex scenarios.
As Web3 data security and privacy protection become increasingly important, Dune Analytics needs to continue to strengthen its measures in this area to protect user data and privacy.
Dune Analytics’ business model excels in flexibility, but is still in its infancy when it comes to integrating token economics. In the future, Dune can explore how to integrate token economics into its business model.
LookOnChain: A leader in real-time monitoring and market insights
As a data analysis platform based on social media, LookOnChain still has room for improvement in data decentralization, especially in the decentralization of data storage and processing.
LookOnChain has demonstrated its unique advantages in tracking whale accounts and large transactions in real time, providing instant and transparent insights into the market.
LookOnChain is relatively limited in in-depth analysis of smart contracts and needs to strengthen its ability to analyze complex smart contract interactions in the future.
In the Web3 environment, LookOnChain needs to further strengthen data security and user privacy protection, especially in handling sensitive transaction data.
LookOnChain’s business model is relatively simple, mainly relying on paying users and platform cooperation. In the future, it can explore integrating token economics into its development strategy to enhance user participation and ecological activity.
How to improve the presence of on-chain data analysis in a fancy way
Based on the above analysis, Nansen, Dune Analytics and LookOnChain have each demonstrated unique advantages and potential in the field of Web3 on-chain data analysis. They all have varying degrees of performance in decentralization capabilities, real-time data tracking, smart contract analysis, Web3 data security, and business models. We expect Nansen to solidify and even expand its leadership position in the market by expanding supported chains and enhancing analytical capabilities. Dune Analytics may continue to maintain its leading position in the field of Web3 data analysis by enhancing the community and improving tool capabilities. LookOnChain will improve its competitiveness in the market by cooperating with more platforms and data providers and enhancing its data analysis services.
Nansen: Integrating decentralized data storage and analysis
Nansen should explore the use of blockchain technology to store and process data to improve the decentralization of data. For example, we cooperate with hardware projects or even the currently popular DePin projects to enhance the security and non-tamperability of data on the one hand, and to further expand the high-end user market such as institutions on the other.
In order to provide more real-time market analysis, Nansen can develop smart contracts to monitor and analyze on-chain events in real time, such as large transactions and token liquidity changes. This will allow Nansen to provide instant market updates and trading opportunities.
Nansen should further deepen its smart contract analysis capabilities, especially in the DeFi ecosystem. For example, providing more in-depth risk assessment and return analysis for DeFi projects to help investors make more informed decisions.
Dune Analytics: Expanding the community-driven model
Dune Analytics can introduce a token incentive mechanism to encourage community members to create and share high-quality data analysis dashboards. This not only increases user engagement, but also enriches the platform’s data resources.
Dune Analytics should explore decentralized data processing solutions, such as using decentralized computing resources to run complex data analysis. This will increase transparency and security of data processing. Dune has a very rich data source, which is their biggest capital for future integration with AI business.
Dune Analytics can further strengthen its integration with smart contracts, allowing users to interact with smart contracts directly from the dashboard, such as executing transactions and participating in DeFi protocols. Dune can even further explore becoming one of the preferred blockchain development platforms for Web3 developers, which may ensure that explosive projects and potential narratives are born directly on Dune, rather than just interesting charts.
LookOnChain: Improving the depth of data analysis
LookOnChain should enhance the analysis capabilities of smart contracts, especially for those complex DeFi protocols and NFT projects. This can help users gain a deeper understanding of the inner workings and risks of these projects.
*Extended data sources and cooperation:
LookOnChain can expand its data sources by partnering with more blockchain projects and data providers. This not only provides a more comprehensive view of the market, but also increases user trust in the accuracy of the data.
Redefining the future of Web3 data analysis tools
Traditional data analysis relies on centralized data storage and processing, but in the Web3 field, this model needs to be reshaped. Tools such as Nansen, Dune Analytics, and LookOnChain should explore data storage and analysis methods based on blockchain technology, such as ensuring data transparency and non-tamperability through distributed ledgers, or utilizing decentralized computing resources for data processing. This is not only a technological innovation, but also a fundamental change in data processing philosophy.
The future of Web3 data analysis tools lies in real-time and predictability. Tools should shift from simple data monitoring to intelligent systems capable of predicting market trends and identifying patterns. For example, through the use of machine learning and artificial intelligence technology, real-time analysis and prediction of market dynamics can be achieved.
Web3 data analysis tools should integrate smart contract technology more deeply. This means not just analyzing smart contract data, but enabling tools to interact directly with smart contracts, providing richer functionality such as automated trading, risk assessment, and strategy execution.
In the Web3 era, data security and privacy protection will become core competitiveness. By adopting advanced technologies such as zero-knowledge proof, data analysis tools can perform in-depth analysis without leaking user sensitive information, thus building a more secure and trustworthy ecosystem.
Web3 data analytics tools should explore incorporating token economics into their business models and functionality. This is not limited to incentive mechanisms, but also includes using tokens as a medium of exchange, proof of stake, and governance tool to create a self-appreciating and sustainable ecosystem.
Finally, Web3 data analysis tools must be agile and adaptable to respond to rapidly changing technology and market environments. This means continuous iteration, rapid integration of emerging technologies, and continuous optimization of user experience. Whoever iterates functions faster and optimizes products faster will be more likely to win.
The future development direction of Web3 data analysis tools is not only technological progress, but also a fundamental innovation in the nature of data analysis and business models. Data providers will hopefully become predictors of market dynamics, assistants for user decision-making, and active participants in the blockchain ecosystem, thus having a higher sense of presence.
The future development of these tools will be affected by many factors, including their technological innovation, market adaptability, user experience, business model, and future development potential. With the continuous advancement of blockchain technology and changes in market demand, these tools need to be constantly adjusted and optimized to maintain their competitiveness in the market.