Galaxy releases first on‑chain fundamentals guide for crypto assets

A Galaxy research report launched this week as the opening installment of its “Do Your Own Research” series, delivering a comprehensive lexicon of on‑chain metrics and a valuation framework for cryptoassets [1]. The guide aims to equip analysts with the tools to assess intrinsic value directly from blockchain data, a capability that has grown in relevance as crypto adoption expands.

Building the on‑chain fundamentals toolbox

The report explains that on‑chain fundamentals differ from technical analysis or social‑sentiment measures by deriving value from raw blockchain activity such as issuance, transfers and supply [1]. It stresses that reliable valuation requires understanding a coin’s consensus and security model before applying any metric, and that many popular indicators—e.g., Bitcoin Days Destroyed, Network Value‑to‑Transactions, HODL Waves—were originally created for Bitcoin and may need adaptation for other assets [1].

Data providers and metric nuances

Galaxy outlines the role of cross‑asset data providers like Coin Metrics, Glassnode, IntoTheBlock and Dune Analytics, which standardize raw blockchain data into comparable metrics [1]. Because each blockchain records transactions differently, providers must engineer bespoke calculations; for example, a “transaction” on one network may represent a distinct user action compared with another [1]. The report notes that newly launched tokens often experience a lag before their on‑chain metrics become available, as providers need time to ingest and index the data [1].

Integrating on‑chain data with broader analysis

While advocating for on‑chain fundamentals, the guide cautions against treating them as a one‑size‑fits‑all solution. It recommends coupling on‑chain insights with technical analysis and sentiment data to form a holistic view of an asset’s valuation [1]. The authors argue that the evolving nature of blockchain technology and market dynamics demands frequent recalibration of metrics, mirroring the iterative process used in traditional finance [1].

What to watch

• Upcoming releases in the series that will apply the framework to DeFi, NFTs and metaverse tokens.
• The timeline for new cryptoassets to appear on major data‑provider dashboards, which can signal when on‑chain metrics become actionable.
• Adjustments to metric calculations as blockchain protocols evolve, potentially altering valuation signals.

The report underscores that on‑chain fundamental analysis is maturing into a sophisticated discipline, yet its effectiveness hinges on deep protocol knowledge and continual metric refinement—an open challenge as the crypto ecosystem diversifies.