Recently, a sandwiching strategy resulted in the loss of $25 million in funds from an attack on MEV bots.
MEV bots are designed to help miners and validators maximize their profits from MEV mining. As a response, Tether has blacklisted an address involved in the attack, dubbed “Sandwich the Ripper.” As blockchain enthusiasts, we understand the value of equipping oneself with the best possible tools and knowledge. That’s why we’re here to guide you through the world of blockchain analysis tools to do your own research and make informed decisions.
So buckle up and get ready to unleash your inner blockchain detective, because we’re about to dive deep into the world of data and analysis!
What is blockchain analysis?
Blockchain analysis refers to the process of analyzing and interpreting data on a blockchain to gain insights into its activity and behavior.
This involves collecting data from the blockchain, such as transaction data and wallet addresses, and using various analytical tools to make sense of it. The purpose of blockchain analysis is often to identify patterns, track transactions, and gain insights into the behavior of users and entities on the blockchain.
Blockchain Analysis Tools
Blockchain tools are designed to extract, analyze, and visualize data from a blockchain network
They help track assets, analyze transactions between users, identify fraudulent activities, and optimize business operations. In addition, blockchain tools can also be used for risk management purposes such as fraud detection or anti-money laundering (AML) compliance.
Some of the most common use cases for blockchain analysis tools include gaming, DeFi, compliance, and trading.
Use Cases of Blockchain Analysis Tools
1. DeFi
In the context of DeFi, users can take advantage of price discrepancies between different liquidity pools or AMMs to earn profits.
But how do you know which pools to invest in? That’s where blockchain analysis tools come in handy! By analyzing transaction data and contract structures, these tools can help you identify the Maximal Extractable Value (MEV) trend, which can give you a good idea of which pools are worth investing in. But it’s not just users who can benefit from blockchain analysis tools. Developers can use these tools to identify trending liquidity pools and tokens and to monitor the behavior of smart contracts to ensure their security.
Plus, by providing insights into user behavior and identifying areas for improvement, these tools can help developers optimize the design of their protocols.
2. Compliance
As the adoption of digital assets continues to grow, financial advisors are increasingly interested in offering these investment products to their clients, but compliance remains a major challenge.
Financial advisors must ensure that any digital asset platform they offer to clients complies with the regulatory requirements of the region. Blockchain analysis tools can be used to ensure compliance with regulatory requirements in various industries. For example, financial institutions can use these tools to track and analyze transactions on their blockchain networks, ensuring that they are in compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
3. Trading
Blockchain analysis tools can provide valuable insights into trading activity, such as volume, price movements, and market trends.
By looking at all this data, traders can make smarter moves and maybe even make some money from changes in the market. And for art collectors and investors, they can keep an eye on the sales and trading of NFTs to spot trends and opportunities. Some tools also offer advanced features such as real-time alerts and risk management tools to help traders mitigate their risk exposure.
Additionally, by reducing inorganic volatility through the use of data analysis, these tools can help protect users from sudden market fluctuations and minimize their potential losses.
4. DAO and Community
DAO Analytics can provide insights into key metrics and indicators that can help assess a DAO’s success and potential for growth.
The price of DAO’s token reflects the market’s perception of its worth and potential. Another key metric to consider is voting patterns. By analyzing the voting behavior of DAO members, it is possible to gain insights into the priorities and preferences of the community.
Metrics for community engagement can also provide valuable insights into the health and vitality of a DAO.
By tracking participation rates, sentiment analysis, and other community engagement metrics, it is possible to gain a deeper understanding of how the DAO is perceived by its members and stakeholders.
Top Blockchain Analysis Tools
Bitquery is a blockchain data company that provides blockchain data across 40+ blockchains and a variety of areas, including transactions, trades, transfers, fund flow, balances, and NFTs.
With real-time and archive data, Bitquery provides comprehensive and accurate blockchain data for individuals and businesses alike. One of the key features of Bitquery is its Coinpath®. It is a set of blockchain money tracing APIs based on a sophisticated mathematical algorithm that can perform complex calculations between blockchain addresses to show the money flow. Coinpath® uses heuristics and machine learning to determine clusters, transaction flow, account balance, etc.
If you’ve been scammed or defrauded on a blockchain network, Coinpath® can help you track down the funds. You can use the tool to visualize the flow of funds between addresses and identify any suspicious activity. This information can be invaluable in investigating fraudulent transactions and building a case against scammers.
One of the standout features of Bitquery’s Coinpath® is its inbuilt GraphQL IDE. You can query data and build blockchain analysis dApps in the language of your choice. It’s a user-friendly interface that makes it easy for anyone to start using Coinpath®.
What’s more, you can export the data you need and visualise it in the tool of your choice.
Bitquery’s clients include Uppsala Security, Chainalysis, and other major players in the blockchain industry. They offer a suite of tools that are essential for anyone working in blockchain investigation and compliance. By using the points system to charge you for what you request, we save you millions of dollars in business costs. Sign up for a developer account for free.
If you have any questions, feel free to ask in our Telegram, Community, or Discord channel.
2. Messari
Messari is a crypto analytics company that provides an array of features that cater to the needs of investors, traders, and researchers including a Governance Tracker, which enables users to keep track of governance proposals and learn more about the decentralized autonomous organization (DAO) landscape.
The platform provides daily research reports that cover all sectors and trends in crypto, offering users valuable insights into the market. Messari also provides an Advanced Screener, which enables users to compare assets on hundreds of metrics using custom screeners. This feature is beneficial for investors and traders who want to analyze different cryptocurrencies and identify the best investment opportunities.
Finally, Messari offers custom watchlists, which enable users to create multiple watchlists to keep track of the assets they care about. Messari has three plans- Pro, Enterprise, and Protocol services for users with different needs.
3. AnChain.AI
AnChain.AI is a blockchain security company with a suite of products designed for web3 risk management.
Blockchain Ecosystem Intelligence (BEI™) API. provides a real-time, comprehensive analysis of cryptocurrency transactions to identify potential risks of money laundering, terrorist financing, and other illicit activities. In addition, AnChain.AI offers the Cryptocurrency Intelligence Surveillance and Operations (CISO™) tool.
CISO™ connects pseudonymous addresses to real-world entities, making it easier for businesses to identify the parties involved in a given transaction. It offers the Web3 Security Operations Center (SOC). for 24/7 monitoring of the blockchain for suspicious activity.
Finally, AnChain.AI’s Screen tool allows businesses to manage their exposure to high-risk crypto wallets, identify vulnerable code, and monitor client activity.
4. Crystal Blockchain
Crystal Blockchain Analytics provides AML compliance and risk management solutions to exchanges, banks, and financial institutions through two main products: Crystal Expert and Crystal DeFi.
Crystal Expert is a blockchain monitoring and investigation solution designed to bring trust and transparency across blockchain ecosystems. One of the key features of Crystal Expert is its case management system, which allows users to investigate suspicious transactions and build cases for regulatory reporting.
Crystal DeFi, on the other hand, is specifically designed to help track the source and purity, or potential risk, of incoming crypto funds in decentralized finance (DeFi) protocols. As DeFi continues to grow in popularity, so does the need for effective AML solutions in this space.
5. Uppsala Security
Uppsala Security has emerged as a leading risk management tool for cryptocurrency AML, regulation compliance, and cybersecurity.
Uppsala Security has a team of security experts who can track stolen funds in real time, providing a valuable service to victims of crypto-related crimes. It also provides digital asset AML protection solutions that help companies comply with regulatory requirements. The company’s AML solution is also integrated with Samsung Blockchain’s wallet, providing a safe user experience for all users.
To enhance its tracking and AML offerings, Uppsala Security has been using Bitquery’s services. In addition to AML compliance, Uppsala Security also offers risk management solutions for cybersecurity.
6. Parsiq
Parsiq is a blockchain API solution that provides indexed data in real-time, historical, and raw formats for dApps.
One of Parsiq’s key offerings is Tsunami, which provides developers and businesses with a comprehensive view of all the blockchain data they need. Tsunami is capable of providing real-time data on transactions, calls, NFTs, and other critical data types.
Parsiq also provides Data Lakes which are custom integrations of dApps and protocols, each with its unique internal logic already applied. Thus, third parties interested in these dApps and protocols will have a way to retrieve their associated data through these dedicated Data Lake APIs.
Parsiq provides three pricing plans- free, pro, and enterprise with different limits on API requests.
7. Dune Analytics
Dune is a blockchain analytics platform that allows users to create their own custom charts and dashboards using plain SQL.
With dashboards for hundreds of projects, users can follow key metrics for DeFi, NFTs, and more. One of the key benefits of Dune is its ability to query human-readable data with SQL. Dune’s dashboard creators are called wizards, and they allow users to easily and quickly create custom dashboards that track the metrics they care about most. These dashboards can be shared with others, making it easy to collaborate and share insights with other users.
Dune supports EVMs like Ethereum, Polygon, Goerli, and Optimism, as well as non-EVM chains like Solana and Bitcoin. Dune offers free, “thug life” and “elite” pricing plans.
8. Nansen AI
Nansen AI is a blockchain analytics platform that provides users with labeled data about cryptocurrencies and their transactions across more than 10 chains.
One of the most powerful features of Nansen AI is its ability to provide deep insights into individual coins. Users can dive into the details of any coin, exploring weekly DEX trades, the latest DEX trades, top transactions, and more.
Users can simply log in to the platform and start exploring the data with an intuitive dashboard. You can build custom dashboards using the Nansen queries. They offer three tiers of pricing: Standard, VIP, and Alpha
9. TRM Labs
TRM Labs has a suite of tools for digital asset compliance and risk management.
One of the tools, Know-Your-VASP, helps assess the risk of virtual asset service providers and other crypto businesses. Another tool, TRM Forensics, helps trace the source and destination of cryptocurrency transactions. This is especially useful in identifying illicit activities such as money laundering and terrorist financing. TRM Tactical is designed to help accelerate crypto investigations on the frontline.
Finally, TRM Transaction Monitor helps businesses comply with anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. This tool monitors digital asset deposits and withdrawals to identify suspicious activity and ensure compliance with regulatory requirements.
Overall, TRM Labs’ suite of tools provides businesses with the necessary tools to effectively manage risks associated with digital assets.
10. Chainalysis
Chainalysis is a blockchain data platform that provides various services to help organizations analyze, track and monitor cryptocurrency transactions.
One of their key products is the Reactor, a tool for investigating cryptocurrency transactions and connecting them to real-world entities. The Reactor provides advanced analytical capabilities, such as automatic peel-chain detection and cross-chain graphing, making it easier for investigators to trace transactions across different blockchains. The platform’s user-friendly interface and interactive visualization tools enable investigators to quickly identify patterns and relationships in the data.
Chainalysis Investigations and Special Programs Team provide ongoing assistance with cases, investigations, and as well as support for law enforcement agencies and regulators.
Chainalysis Business Data is another offering by the company that provides ongoing visibility into how customers use their cryptocurrency — before and after it leaves the platform. This helps inform organizational decisions to optimize market development and improve customer experience initiatives.
Overall, Chainalysis is a powerful tool for anyone looking to better understand cryptocurrency transactions and their real-world impact
11. Elementus
Elementus is a blockchain intelligence platform that is designed to help security-focused crypto organizations by identifying and tagging blockchain data.
It provides end-to-end cyber security and blockchain analysis, with a focus on identifying and tagging blockchain data. One of the key features of Elementus is its real-time risk-scoring system. This allows users to monitor and evaluate the level of risk associated with specific blockchain transactions.
In addition to real-time risk scoring, Elementus also provides on-chain monitoring.
12. DappRadar
DappRadar is a platform that provides data on various dApps across dozens of blockchains, including Ethereum, Binance Smart Chain, Polygon, and Avalanche.
It offers a wide range of data for users to explore, including games data, tokens data, DeFi data, NFT data, and wallet data. Using on-chain data, dAppRadar tracks, measures, and analyzes the performance of decentralized applications.
One of the most significant challenges with decentralized applications is the prevalence of fraudulent spam transactions. dAppRadar addresses this issue by using machine learning algorithms to optimize its data and remove these spam transactions from the equation.
One exciting feature of dAppRadar is its use of machine learning on sales and trends, to give users the best estimates of the value of their NFTs.
