Analysis of Dune: A powerful and practical free on-chain analysis tool

Dune Analysis: A free, practical on-chain tool.

Author: little bear

Dune is a company that focuses on analyzing Web3 data, providing comprehensive data analytics tools and dashboards for users in the crypto asset market and blockchain technology.

In this highly digital age, Dune’s data analytics tools provide users with real-time market dynamics and price trends, helping them to make better investment strategies. Whether users are beginners or professional investors, Dune can provide relatively comprehensive and accurate data analysis and market intelligence. Dune has raised a total of $80 million in three rounds of financing from giants such as @dragonfly_xyz, @multicoincap, and @coinbase.

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Why is analyzing on-chain data important?

• On Ethereum and other blockchain platforms, data is on-chain, meaning that all transactions, contract states, and events are recorded on the blockchain and are immutable and undeletable. Therefore, tracking on-chain data is crucial for developing and using blockchain-based applications.
• Ensuring data accuracy and integrity: Since data on the blockchain is immutable, tracking on-chain data can ensure data accuracy and integrity. This is particularly important for applications in finance, insurance, supply chain, and other fields.
• Real-time monitoring of contract status and transactions: Tracking on-chain data can help developers monitor contract status and transactions in real-time, promptly identifying errors or abnormal situations and taking necessary measures. For developers, these data can also provide strong support for understanding user needs and market trends, and for the development and optimization of Dapps.
• Analyzing and predicting market trends: Tracking on-chain data can help analyze data such as coin price, market trading volume, and position holding, etc., thereby predicting market trends and making better investment decisions.
• Automatically executing smart contracts: Tracking on-chain data can help smart contracts execute automatically, such as triggering specific events or conditions of a contract.

In summary, tracking on-chain data is essential for developing and using blockchain applications, ensuring data accuracy and integrity, real-time monitoring of contract status and transactions, analyzing and predicting market trends, and automatically executing smart contracts, etc.

How does Dune get data?

Compared to traditional industries, it is easier to obtain and analyze data on the blockchain.

Although the technical details of each chain are not exactly the same, every blockchain follows the logic of “proposing transactions – reaching consensus – adding to the chain”. There are various consensus mechanisms in the blockchain, but once consensus is reached, information about the latest block is broadcast in the blockchain network, letting all nodes know about this new block and record it.

In theory, anyone can run their own node, so the transparency is high in the blockchain world, allowing data analysts to access complete information about “what is happening”. Dune accesses blockchain data captured by node creators through APIs, allowing Dune to focus on creating the best data access experience, while node creators focus on running nodes as effectively as possible.

The data obtained from node creators is generally in the form of hash bytecode, which Dune extracts into a group of tables called “raw data” through its data engine, and then parsed through smart contracts.

After the data is parsed, it is created into easy-to-read visual charts and data dashboards using SQL (a high-level language used for storage, manipulation, and retrieval in databases).

An example of how to use Dune

After opening the Dune website, you can see many trend data dashboards, including on-chain statistics for many Dapps such as Ethereum, Arbitrum, Optimism, etc.

Let’s take @LayerZero_Labs’ data dashboard as an example:

Some key information can be extracted from it:

• Over one million wallets are using LayerZero.
• Users who have made more than ten transactions (generally considered to be active real users) account for 15%.
• Users who have used LayerZero for less than a month account for 66%.

Meanwhile, we can retrieve the number of transactions and transaction amount of any wallet using LayerZero by wallet address.

We can also create custom digital dashboards:

If you are proficient in SQL language, you can directly write query code in the Dune panel:

In addition, we can also use ChatGPT to generate SQL query code:

To query, simply paste the code into the editor and click “Run”:

Then click “Save” and you can add a description for this data dashboard:

In conclusion, Dune is a very powerful tool. The data dashboard design on Dune is intuitive and can be easily understood without data analysis skills.

If you can use ChatGPT+Dune well, I believe it can greatly help Web3 players, developers, and others better understand the digital asset market and blockchain networks, develop better investment and trading strategies, optimize DApps and smart contracts, and improve the security and reliability of blockchain networks.

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