On Chain Metrics

Though Fundamental Analysis is a different discipline to Technical Analysis, they do at times overlap. We’ve already introduced the value of on chain metrics as leading indicators of price change. When looked at in a broader sense, they give invaluable insight into the potential long term success of a project.
For cryptocurrency projects that are live on-chain metrics will tell you whether the blockchain is actually being used. Look for relative numbers to get a sense of growth rate, as well as moving averages.

Metrics like Transaction Count, Transaction Value and the number of Active addresses will give you a sense of whether the underlying blockchain has users, but don’t necessarily define success.

Address distribution – the proportional distribution of coins or tokens across users – is perhaps more meaningful as it can give a good idea of the type of user. Are they all addresses with tiny balances, is there a healthy distribution, what is the velocity of circulation of coins?

You should also look at a metric for the specific consensus method being used. Hashrate is relevant for Proof of Work, Amount Staked/Number of Contributors for Proof of Stake. 

Whatever the consensus mechanism, try and find a metric that is meaningful and cannot be faked or fudged, and consider whether the network is supported by subsidies or concessions.

For the technically savvy, this kind of data can be accessed by running a node, or pulling from an API. If you’re not comfortable with that there are resources available online that provide data, though you may need to dig around for the smaller projects. 

There are websites that provide details of fee generation, the number of active validators and the amount of value locked. These are all very useful and meaningful data points to help establish the potential future value of a project.