This article is for fellow investors who are crypto-curious but feel overwhelmed. During my journey in crypto, I hope to learn more and bridge the gap between fundamental analysis in stocks and on-chain analysis in crypto.
In my last post, I shared that I recently started working in the crypto industry. Coming from a background in traditional stock investing, stepping into crypto felt like entering a completely different world. One that is filled with new terms, protocols, and data sources.
But the more I learned, the more I realised this: crypto isn’t as mysterious as it seems. This is especially true if you’re already familiar with how to evaluate stocks. In fact, blockchain networks produce real, transparent metrics that can be analysed using similar principles used in traditional finance.
What Is On-Chain Analysis in Crypto and Why It Matters
In stock investing, most investors rely on quarterly earnings reports and financial statements to understand a company’s fundamentals.
In crypto, everything happens on-chain and in real time.
On-chain analysis is the process of analyzing blockchain data to assess the health and value of a project. Since blockchains are transparent by design, investors can track activity, usage, fees, and liquidity. This are all directly from the ledger.
This means you don’t need to wait for reports or rely on internal disclosures. If you know where to look, you can access live financial and operational data right now.
Comparing On-chain analysis VS Traditional Stock Metrics
For those used to analysing stocks, here’s a helpful and simple comparison between familiar financial metrics and their crypto counterparts.
| Key Metrics | Traditional Finance (Stocks) | On-chain (Crypto) |
|---|---|---|
| Market Value | Company Market Cap. | Token Market Cap. |
| Revenue | Company Revenue | Protocol Fees and Revenue |
| Total Assets | Total AUM | Total Value Locked (TVL) |
| Active user base | Daily Active users (DAU) | Daily Active wallet addresses |
| Price | Share Price | Token Price |
Just like you might use a price-to-earnings ratio (P/E) to value a stock, crypto investors can use similar logic. Comparing a token’s market cap to its fee revenue or TVL to determine whether it is overvalued or undervalued. In the coming series and articles, I may do an in-depth analysis on some interesting projects.
Why Traditional Stock Investors Should Pay Attention to Crypto Fundamentals
To many, crypto still seems driven by speculation, memes, or hype. From $Trump coin to Dogecoin and all. But there are real projects with real users generating real value. There is readily available data to prove it is public, verifiable, and available 24/7.
If you already know how to evaluate a company based on its fundamentals, you’re not starting from scratch in crypto. Rather, you are ahead of the curve. The difference is just where to find the data and how to interpret it in the context of decentralized systems.
My goal in this series is to demystify crypto for traditional investors. This will highlight how much overlap there is while also showing what’s new and unique about Web3.
What’s Next: Breaking Down On-Chain Metrics One by One
Coming from a background in stock investing, I’ve always valued clear, research-backed insights when evaluating opportunities. There are no shortage of writers, analysts, and educators covering traditional markets. However, when it comes to on-chain analysis in crypto, there’s still a noticeable gap.
Too often, crypto content focuses on speculation, price charts, or hype cycles. But as I’ve started working in the crypto space, I have seen how much real and transparent data exists. This is how we can apply fundamental frameworks to make sense of it all.
That’s why I’m launching this content series: to demystify crypto and build an educational bridge between traditional investing and blockchain analysis. If you’re a stock investor curious about crypto fundamentals, or someone just trying to learn how to evaluate projects beyond the hype, this is for you.
This first post is just the beginning. I will be keeping a close eye on how it’s received — and if there’s interest, I’ll continue diving deeper into the key metrics that matter: daily active addresses, protocol revenue, DEX volume, TVL, and more.
Crypto doesn’t have to be a guessing game. With the right metrics, it can be just as data-driven and analytical as stock investing. If you are interested, stay tuned to the upcoming articles.
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In addition, do check out our other latest articles. If you are keen, check out our articles on other analysis: My Thoughts on Crypto Thus Far and UOB Tax Saver Promo.