CLASSIFICATION OF ON-CHAIN METRICS FOR STRUCTURAL ANALYSIS OF DIGITAL ASSET MARKETS
Abstract
This study develops a structured classification of on-chain metrics for the analysis of digital asset market structure and introduces a five-dimensional analytical framework that integrates blockchain-derived indicators into a coherent system of market interpretation. I examine the analytical roles of transaction activity metrics, supply distribution indicators, liquidity measures, network participation variables, and investor behaviour signals as complementary dimensions describing capital circulation processes within distributed ledger environments. I construct a methodological taxonomy that organizes heterogeneous blockchain indicators according to their structural contribution to market analysis rather than their technical measurement properties. I demonstrate that transaction metrics capture the intensity and direction of capital flows, supply distribution indicators reflect ownership concentration and accumulation regimes, liquidity measures describe the availability of assets for exchange participation, network activity metrics signal changes in user engagement, and behavioural indicators reveal shifts in investor positioning across market cycles. I further propose a five-dimensional structural model that explains how these analytical layers interact and jointly determine the internal configuration of digital asset ecosystems.
I introduce the concept of structural on-chain analytics as an integrated methodological approach that interprets blockchain-based indicators as components of a unified analytical environment rather than isolated measurements of network activity. I show that this framework improves the consistency of market diagnostics and supports the identification of structural transitions between accumulation, distribution, expansion, and consolidation regimes observable in distributed financial systems. The results extend the methodological foundations of digital asset market research and provide a systematic basis for integrating blockchain-derived indicators into investment analysis, risk evaluation, and structural monitoring of cryptocurrency markets. The proposed classification framework supports the development of multidimensional analytical models capable of improving the interpretation of capital allocation dynamics within blockchain-based financial infrastructures.
Downloads
References
Celig, T., Ockenga, T. A., & Schoder, D. (2025). Distributional equality in ethereum? on-chain analysis of Ether Supply Distribution and Supply Dynamics. Humanities and Social Sciences Communications, 12(1). https://doi.org/10.1057/s41599-025-04728-9
Ciaian, P., Kancs, d’Artis, & Rajcaniova, M. (2026). On- and off-chain demand and supply drivers of Bitcoin Price. Economics, 20(1). https://doi.org/10.1515/econ-2025-0169
Xia, L., Zhu, T., Jing, Z., Wang, Q., Ma, Z., Huang, Z., & Yin, Z. (2025). A two-layer transaction network-based method for virtual currency address identity recognition. Cryptography, 9(4). https://doi.org/10.3390/cryptography9040065
Ang, A., Morris, T., & Savi, R. (2023). Asset allocation with crypto: Application of preferences for positive skewness. The Journal of Alternative Investments, 25(4), 7–28. https://doi.org/10.3905/jai.2023.1.185
Chowdhury, M. A. F., Abdullah, M., Alam M., Abedin, M. Z., & Shi, B. (2023). NFTs, DeFi, and other assets efficiency and volatility dynamics: An asymmetric multifractality analysis. International Review of Financial Analysis, 87. https://doi.org/10.1016/j.irfa.2023.102642
Metelsk,i D., & Sobieraj, J. (2022). Decentralized Finance (DeFi) Projects: A Study of Key Performance Indicators in Terms of DeFi Protocols’ Valuations. International Journal of Financial Studies, 10(4). https://doi.org/10.3390/ijfs10040108
Zhao, Y., Kang, X., Li, T., Chu, C. K., & Wang, H. (2022). Toward Trustworthy DeFi Oracles: Past, Present, and Future. IEEE Access, 10, 60914–60928. https://doi.org/10.1109/ACCESS.2022.3179374
Schär, F. (2022). Decentralized finance: on blockchain-and smart contract-based financial markets. Federal Reserve Bank of St. Louis Review, 103(2), 153–174. https://doi.org/10.20955/r.103.153-74
Grassi, L., Lanfranchi, D., Faes, A., & Renga, F. M. (2022). Do we still need financial intermediation? The case of decentralized finance – DeFi. Qualitative Research in Accounting and Management, 19(3), 323–347. https://doi.org/10.1108/QRAM-03-2021-0051
Jensen, J. R., von Wachter, V., & Ross, O. (2021). An Introduction to Decentralized Finance - DeFi. Complex Systems Informatics and Modeling Quarterly, 26, 46–54. https://doi.org/10.7250/csimq.2021-26.03
Kitzler, S., Victor, F., Saggese, P., & Haslhofer, B. (2023). Disentangling Decentralized Finance (DeFi) Compositions. ACM Transactions on the Web, 17(2). https://doi.org/10.1145/3532857
Schueffel, P. (2021). DeFi: Decentralized Finance - An Introduction and Overview. Journal of Innovation Management. Universidade do Porto - Faculdade de Engenharia. https://doi.org/10.24840/2183-0606_009.003_0001
Rudd, M. A., & Porter, D. (2025). Bitcoin supply, demand, and Price Dynamics. Journal of Risk and Financial Management, 18(10), 570. https://doi.org/10.3390/jrfm18100570
Augustin, P., Rubtsov, A., & Shin, D. (2023). The impact of derivatives on spot markets: Evidence from the introduction of bitcoin futures contracts. Management Science, 69(11), 6752–6776. https://doi.org/10.1287/mnsc.2023.4900
Biais, B., Bisière, C., Bouvard, M., Casamatta, C., & Menkveld, A. J. (2023). Equilibrium bitcoin pricing. The Journal of Finance, 78(2), 967–1014. https://doi.org/10.1111/jofi.13206
Mazur, M., & Polyzos, E. (2025). Spot bitcoin etfs: The effect of fund flows on Bitcoin Price Formation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.5452994
Mohamad, A. (2025). Do bitcoin etfs lead Price Discovery following their introduction in the bitcoin market? Computational Economics, 66(1), 947–969. https://doi.org/10.1007/s10614-025-10998-x
Aleti, S., & Mizrach, B. (2021). Bitcoin spot and futures market microstructure. Journal of Futures Markets, 41(2), 194–225. https://doi.org/10.1002/fut.22163
Chen, Y.-L., & Yang, J. J. (2024). Time-varying price discovery in regular and microbitcoin futures. Journal of Futures Markets, 44(1), 103–121. https://doi.org/10.1002/fut.22466
Dimpfl, T., & Peter, F. J. (2021). Nothing but noise? Price discovery across cryptocurrency exchanges. Journal of Financial Markets, 54. https://doi.org/10.1016/j.finmar.2020.100584
Entrop, O., Frijns, B., & Seruset, M. (2020). The determinants of price discovery on bitcoin markets. Journal of Futures Markets, 40(5), 816–837. https://doi.org/10.1002/fut.22101
Gemayel, R., Franus, T., & Bowden, J. (2023). Price discovery between Bitcoin spot markets andexchange traded products. Economics Letters, 228, 111152. https://doi.org/10.1016/j.econlet.2023.111152
Hung, J.-C., Liu, H.-C., & Yang, J. J. (2021). Trading activity and price discovery in Bitcoin futuresmarkets. Journal of Empirical Finance, 62, 107–120. https://doi.org/10.1016/j.jempfin.2021.03.001
Kim, J., & Linn, S. C. (2022). Price discovery under model uncertainty. Energy Economics, 105833. https://doi.org/10.1016/j.eneco.2022.105833
Pati, P. C. (2022). Informativeness of CME Micro Bitcoin Futures in Pricing of Bitcoin: Intraday Evi-dence. Finance Research Letters, 49. https://doi.org/10.1016/j.frl.2022.103084
Podhorsky, A. (2024). Bursting the bitcoin bubble: Do market prices reflect fundamental bitcoinvalue? International Review of Financial Analysis, 93, 103158. https://doi.org/10.1016/j.irfa.2024.103158
Wu, J., Xu, K., Zheng, X., & Chen, J. (2021). Fractional cointegration in bitcoin spot and futures mar-kets. Journal of Futures Markets, 41(9), 1478–1494. https://doi.org/10.1002/fut.22216
Sun, W., Jin, H., Jin, F., Kong, L., Peng, Y., & Dai, Z. (2022). Spatial Analysis of Global Bitcoin Mining. Scientific Reports, 12(1). https://doi.org/10.1038/s41598-022-14987-0
Mišić, V. B., Mišić, J., & Chang, X. (2022). Reducing the number of transaction messages in bitcoin. Peer-to-Peer Networking and Applications, 15(1), 768–782. https://doi.org/10.1007/s12083-021-01278-0
Gronwald, M. (2021). How explosive are cryptocurrency prices? Finance Research Letters, 38, 101603. https://doi.org/10.1016/j.frl.2020.101603
Liu, Y., & Tsyvinski, A. (2020). Risks and returns of cryptocurrency. The Review of Financial Studies, 34(6), 2689–2727. https://doi.org/10.1093/rfs/hhaa113
Lucey, B. M., Vigne, S. A., Yarovaya, L., & Wang, Y. (2022). The cryptocurrency uncertainty index. Finance Research Letters, 45, 102147. https://doi.org/10.1016/j.frl.2021.102147
Podhorsky, A. (2023). Taxing bitcoin: Incentivizing the difficulty adjustment mechanism to reduce electricity usage. International Review of Financial Analysis, 86, 102493. https://doi.org/10.1016/j.irfa.2023.102493
Kubal, J., & Kristoufek, L. (2022). Exploring the relationship between Bitcoin Price and network’s hashrate within endogenous system. International Review of Financial Analysis, 84, 102375. https://doi.org/10.1016/j.irfa.2022.102375
Kim, D., Ryu, D., & Webb, R. I. (2023). Determination of equilibrium transaction fees in the Bitcoin Network: A rank-order contest. International Review of Financial Analysis, 86, 102487. https://doi.org/10.1016/j.irfa.2023.102487
Aspris, A., Foley, S., Svec, J., & Wang, L. (2021). Decentralized exchanges: The “wild west” of cryptocurrency trading. International Review of Financial Analysis, 77, 101845. https://doi.org/10.1016/j.irfa.2021.101845
Jiang, S., Li, Y., Wang, S., & Zhao, L. (2022). Blockchain competition: The tradeoff between platform stability and efficiency. European Journal of Operational Research, 296(3), 1084–1097. https://doi.org/10.1016/j.ejor.2021.05.031
Kristoufek, L. (2020). Bitcoin and its mining on the Equilibrium Path. Energy Economics, 85, 104588. https://doi.org/10.1016/j.eneco.2019.104588
Tsang, K. P., & Yang, Z. (2021). The market for Bitcoin transactions. Journal of International Financial Markets, Institutions and Money, 71, 101282. https://doi.org/10.1016/j.intfin.2021.101282
Yi, E., Cho, Y., Sohn, S., & Ahn, K. (2021). After the splits: Information flow between Bitcoin and Bitcoin family. Chaos, Solitons & Fractals, 142, 110464. https://doi.org/10.1016/j.chaos.2020.110464
This work is licensed under a Creative Commons Attribution 4.0 International License.
