How To Analyze Any Crypto Token in 5 Minutes (Dune Analytics)

Summary

In this informative video, the host introduces a new dashboard designed to analyze any ERC20 token within five minutes, focusing on the optimism token (OP). The dashboard assesses token momentum, liquidity, and distribution, providing insights into wallet interactions, transfers, and community health. It also delves into token sourcing and destinations, and the distribution of holdings among holders, offering a comprehensive view of the token's ecosystem.

Takeaways

• 📈 The video introduces a new dashboard for analyzing crypto tokens, specifically ERC20 tokens, in just five minutes.
• 🔍 The dashboard is designed to provide insights into three main categories: momentum, liquidity, and distribution of tokens.
• 🌐 The speaker uses the optimism token (OP) as an example to demonstrate how to use the dashboard, highlighting its role in governance and community engagement.
• 📊 Momentum is analyzed by looking at the number of wallets interacting with the token and the nature of their interactions, such as new entries or accumulations.
• 💧 Liquidity is examined by identifying where tokens are coming from (sourcing) and where they are going (destinations), including transfers, multi-sig wallets, and DEXes.
• 📈 The dashboard shows an exponential increase in the number of addresses interacting with the OP token since September 2022.
• 💼 The volume of OP tokens transferred has remained stable at around 100 million tokens per month.
• 🔑 The dashboard allows users to identify wallet activities, including current balances, first acquisition dates, total acquisitions, and dumps.
• 🏦 The source of tokens has changed over time, with a significant portion coming from centralized exchanges after the token was listed in June.
• 💰 The destination of tokens reveals where they are being deposited or staked, with a large amount in Merkel distributor and various liquidity pools and staking contracts.
• 📊 Distribution analysis shows that a small percentage of wallets hold a significant amount of tokens, indicating a potentially skewed distribution for governance tokens like OP.
• 📝 The video encourages viewers to explore the dashboard with their tokens of interest and share any interesting findings or patterns they discover.

Q & A

What is the main purpose of the video?

The main purpose of the video is to teach viewers how to analyze any crypto token quickly using a newly created dashboard that provides insights through 13 charts.

What is an ERC20 token and where can I learn more about it?

An ERC20 token is a type of token used on the Ethereum blockchain that follows a standard set of rules for how tokens are created and interact with the network. More information can be found in the newsletter mentioned in the script.

What is the significance of the optimism token (OP) mentioned in the script?

The optimism token (OP) is the governance token for the Optimism blockchain, which is used for making decisions about the network's future rather than paying for transaction fees.

What does the term 'momentum' refer to in the context of the video?

In the context of the video, 'momentum' refers to the activity level of wallets interacting with the token, including how many new wallets are involved and how they are interacting.

How has the number of addresses interacting with OP token changed since September 2022?

The number of addresses interacting with the OP token has increased exponentially since September 2022.

What does the term 'liquidity' mean in the context of the video?

In the context of the video, 'liquidity' refers to the flow of tokens, where they are coming from, and where they are going to.

What is the significance of the token sourcing and destinations in the analysis?

Token sourcing and destinations are significant because they provide insights into where the tokens are being acquired from and where they are being deposited or used, which can indicate the health and usage patterns of the token.

What is the importance of distribution in the analysis of a token?

Distribution is important because it shows how evenly the tokens are spread among holders, which can indicate the fairness and accessibility of the token to different participants in the network.

How can one identify major token holders or significant transactions using the dashboard?

By using the dashboard, one can search for specific wallet labels or transaction amounts to identify major holders or significant transactions, providing a deeper understanding of the token's movement and control.

What does the script suggest about the community of the OP token?

The script suggests that the community of the OP token is healthy, with an increasing number of wallets interacting with the token, most of which are either new or accumulating more tokens.

How can one find information about specific protocols or transactions mentioned in the script?

One can find more information about specific protocols or transactions by using tools like 'optimism scan' and searching for the mentioned protocols or transaction details.

What is the role of decentralized exchanges (DEX) in the liquidity analysis of tokens?

Decentralized exchanges play a crucial role in liquidity analysis as they are often the source of token sourcing and destinations, providing insights into where tokens are being traded and the volumes involved.

How can the dashboard help in understanding the distribution of token holdings among different percentiles?

The dashboard can show the percentage of holders and the amount of tokens they hold, allowing viewers to understand the distribution of token holdings and identify patterns such as exponential distribution or concentration of holdings.

What does the script imply about the total supply of the OP token and its distribution among holders?

The script implies that the total supply of the OP token is 4.29 billion, and the distribution among holders is such that a significant number of wallets hold a small amount of tokens, indicating a large but dispersed holder base.

Outlines

00:00

📊 Crypto Token Analysis Dashboard Introduction

The speaker introduces a new dashboard designed to analyze any ERC20 token in just five minutes. The dashboard includes 13 charts that provide comprehensive insights into the token's context. The focus is on the Optimism (OP) token, which serves as the governance token for its blockchain. The speaker explains the importance of understanding how tokens are used in governance, membership, and DeFi. The dashboard allows for the analysis of momentum, liquidity, and distribution, with the latter referring to how evenly a token is spread among holders. The dashboard excludes contract wallets from the analysis to focus solely on user interactions. The speaker also notes the exponential growth in the number of addresses interacting with the OP token since September 2022, indicating a healthy community engagement.

05:03

🔍 In-depth Analysis of Token Momentum, Liquidity, and Distribution

The video script delves into the analysis of the OP token's momentum, showing an increase in the number of addresses interacting with the token and their actions, such as new ownership or accumulation. The script also discusses liquidity, detailing the sources of tokens and their destinations, including transfers from centralized exchanges and other protocols like Rubicon and Song Finance. The speaker highlights the importance of Dex-specific analysis for liquidity and mentions the competitive liquidity between Uniswap and Velodrome. The distribution section examines the percentage of holders and the number of tokens they hold, revealing a large number of wallets with small amounts of OP tokens. The script also touches on the Gini coefficient and Palm ratio, suggesting their relevance for smaller communities but less so for the OP token with over 500,000 holders. The speaker invites viewers to share their findings and patterns discovered using the dashboard and thanks the Optimism project for its support.

Keywords

💡Web3

Web3 refers to the third generation of the internet, often associated with decentralized technologies and blockchain. In the context of the video, Web3 is the overarching theme, as it discusses analyzing crypto tokens, which are integral to this space. The script mentions 'web3 data dends' and 'governance token', indicating the focus on decentralized applications and governance within the Web3 ecosystem.

💡Crypto Token

A crypto token is a type of digital asset that represents a particular use case or utility within a blockchain network. In the video, the focus is on analyzing any ERC20 token, which is a standard for tokens on the Ethereum blockchain. The script specifically looks at the 'Optimism Token (OP)', which is used for governance within its respective blockchain network.

💡Dashboard

A dashboard in the context of the video refers to a user interface that consolidates information for easy analysis. The creator mentions a 'new dashboard' that displays 13 charts to provide insights into any ERC20 token. This tool is central to the video's educational content on how to quickly analyze crypto tokens.

💡ERC20 Token

ERC20 is a standard used for creating tokens on the Ethereum blockchain. These tokens have uniform functions that facilitate their interchangeability with other contracts. The script uses the term to describe the type of tokens the dashboard is designed to analyze, with 'Optimism Token (OP)' being an example of an ERC20 token.

💡Governance Token

A governance token is a type of cryptocurrency that is used to participate in the governance of a blockchain network or decentralized application. In the video, 'Optimism Token (OP)' is identified as the governance token for the Optimism chain, which is used to make decisions about the network's development and direction.

💡Momentum

In the context of the video, momentum refers to the activity and interaction of wallets with a particular token. The script discusses how the number of addresses interacting with the OP token has increased exponentially, indicating growing interest and activity within the community, which is a sign of a healthy ecosystem.

💡Liquidity

Liquidity in the video pertains to the availability of tokens in the market and their movement. It is analyzed by looking at token sources and destinations, indicating where tokens are coming from and where they are going. The script mentions that liquidity analysis is crucial for understanding the token's market dynamics and its presence in various decentralized exchanges (Dexes).

💡Distribution

Distribution refers to how evenly or unevenly tokens are spread among holders. The video script discusses the distribution of the OP token, noting how many wallets hold a certain amount of tokens and how this distribution has changed over time. This is important for understanding the token's accessibility and the fairness of its allocation.

💡Multi-Sig

Multi-Sig, short for multi-signature, refers to a wallet that requires more than one key to authorize a transaction. In the script, multi-sig wallets are excluded from certain analyses to focus on user behavior. The video also mentions tracking multi-sig transactions to understand significant token movements, such as transfers to the Optimism Foundation wallet.

💡Dex

Dex stands for decentralized exchange, which is a platform that allows for the trading of cryptocurrencies in a decentralized manner without the need for a central authority. The video script discusses analyzing liquidity per Dex protocol and the volumes, which is important for understanding where tokens are being traded and the activity level of different exchanges.

💡Public Goods Funding

Public Goods Funding is a concept where a community or network provides financial support for projects or initiatives that are considered public goods. The script mentions 'Retro public goods funding' as a shout-out to the Optimism project for distributing tokens to the community, which is a form of public goods funding in the Web3 space.

Highlights

Introduction of a new dashboard for analyzing any crypto token in just five minutes.

Explanation of what an ERC20 token is and its use in governance, membership, and DeFi.

The optimism token (OP) is the focus, serving as the governance token for the Optimism chain.

Recognition of the Retro public goods funding and the distribution of millions of tokens to the community.

The dashboard's ability to analyze tokens across three categories: momentum, liquidity, and distribution.

Momentum analysis shows an exponential increase in addresses interacting with OP since September 2022.

Token price reflection and the breakdown of actions into newcomers and accumulators.

Stable volume of 100 million tokens transferred monthly as observed in the dashboard.

Visualization of wallet activity and the ability to identify specific wallets, such as the OP Foundation wallet.

Tracking of 662,132 unique holders of OP tokens at some point in time.

Analysis of transfer activity, especially the 95th percentile of token transfers.

Identification of centralized exchanges and multi-sig wallets as significant sources of token transfers.

Liquidity section breakdown into token sources and destinations, with a focus on wallet-to-wallet transfers and DEXes.

Changes in token sourcing post-listing on centralized exchanges in June.

Investigation of protocols like Rubicon and their impact on token sourcing.

Token destination analysis revealing unclaimed tokens and those in liquidity pairs or staking contracts.

Dex-specific liquidity analysis to understand where to swap or provide liquidity.

Distribution analysis showing the percentage of holders and the number of tokens they hold.

Observation of an exponential distribution of OP tokens among holders, indicating a large number of small holders.

Discussion on the relevance of the Gini coefficient and Palm ratio for smaller communities.

Invitation for viewers to share their findings and patterns discovered using the dashboard on different tokens.

Transcripts

what's up everyone welcome back to web3

data djends today I'm going to teach you

how to analyze any crypto token in just

five minutes I've created a new

dashboard it's revamped basically just

13 charts tells you everything all the

context you need to know behind any

erc20 token now if you don't know when

erc20 token is check out the newsletter

below or if you just want to read

through this check out the newsletter

below I have a quick primary here about

how it's used in governance how it's

used in membership and defy for today

we're going to be looking at the

optimism token op which is basically

their governance token for their chain

it's not the native token used to pay

fees huge shout out for them for the

Retro public goods funding number two

they've distributed I think like 10 or

something Million worth of tokens to the

community web 3D editions was one of the

selected winners so thank you very much

for that without further Ado let's get

into the dashboard so I like to think

about tokens in terms of three

categories right one is momentum

momentum is just like how many wallets

are interacting with the token and how

are they interacting with it there's

liquidity which is where tokens coming

from and where a tokens going to and the

last one is like distribution so like

how well distributed is the token is it

fairly distributed what are the average

Holdings by different percentiles let's

just get into it all right in this

dashboard I've already put in the op

token I've switched to optimism you can

do any evm chain and I've started from

April 26th which was the day it was

deployed and I'm looking at things by

month I also exclude contracts so and

all of these like balances and

distributions and whatever queries

contracts that are not multi-cigs or

like contract wallets like Argent or

Dharma those are excluded from the

analysis where only really want to look

at users

so looking at momentum we can see that

the number of addresses interacting with

op has increased pretty much

exponentially since

September 2022. all right let's reflect

the token price and if we break down

their actions into either a newer choir

which means they didn't have the token

before or they're accumulating which

means they already had the op token

their wallet they just got more of it or

dumped some or dumped all we can see

that most of the new like the wallets

interact with the token are either new

or accumulating all right so that's

pretty indicative of a healthy Community

it's worth noting that the volume has

been pretty stable at about like 100

million tokens transferred note this

isn't traded this is transferred a

hundred million tokens transferred

basically every month so the volume

hasn't really picked up we can just also

look at who's behind all these actions

so you can see a wallet's current

balance when they first acquired the

token how much totally have acquired how

much total they've dumped and I've put

some wall labels here I think this one

is also an OP Foundation wallet but if I

just wanted to see all op wallets for

example I would just type op here

and I think this is only one that's

labeled but there's 1.17 billion

optimism tokens in here and fun little

tidbit this 662 000 rows because this

query tracks everyone who's ever owned

the token I can quickly look here and

say okay there's been 662 132 holders of

op tokens at some point in time all

right you might also want to see what

transfer activity is happening so in

this query I've shown you the 95th

percentile of token transfers right so I

think for optimism it's probably like 1K

or 1.3 K is like the 95th percentile of

token transfers you can see a lot of the

transfers are from centralized exchanges

but it can be helpful to just search

like multi-zig and just get a sense of

okay what have all the multi-sig

transfers been this one was 141k which

is a lot if I click into it I can see oh

it's transferred to the optimism

Foundation wallet so that's probably

just them like give doing something back

but this is good to know and look over

time of even in the last week all these

wallets that are multi-cigs have been

pretty active

so let's get into the second section now

on liquidity so liquidity there's token

sources and token destinations so

sourcing is just saying okay for May

2022 wallets got four percent of our

tokens from unknown contracts 29.5 of

tokens was just a wallet to wallet

transfer 19 of transfers were

multi-sigital wallet 12 or from dexes

and then 35 were from op like optimism

contracts all right and you can see over

time this has changed especially as I

think it got listed on centralized

exchanges in June it looks like so then

21 of

token sourcing has basically come from

centralized exchange since then there's

some other protocols here you can see

Rubicon you can see song finances in

here premium iron bank right so these

are all like maybe things you want to

look deeper into right so if you clicked

into this query and then put in the same

parameters I could actually search here

like Rubicon and see like all right

here's an example transaction

let me just go and check out dig deeper

into what's going on in Rubicon like why

what action is being taken so in this

case they're withdrawing some shares all

right so that might be something I will

want to look into to understand why 35

of token sourcing is coming from Rubicon

in October or November December

also important is where tokens going a

lot of the times you're not holding the

token in your wallet you've deposited

somewhere or staked it somewhere for

various reasons it could be for

liquidity pool for yield whatever and

here you can just quickly see oh there's

50.9 million op tokens and Merkel

distributor which is like means it's

unclaimed yet or not distributed yet a

bunch of it is in like decks liquidity

pairs but if you dig through this here

there's some vaults there's some staking

contracts this is all stuff you'd look

into and see like netflow is how much

it's holding over time and then Valley

in and value out self-explanatory no

liquidity analysis is done without some

sort of Dex specific analysis so here

I'm saying all right let me see the op

tokens liquidity per Dex protocol and

the volumes right so if I wanted to be

an LP or even just a Trader I would want

to know like what protocols to swap or

provide liquidity to so here I can see

that unisop and velozerum are basically

competing for the top spot there's like

a tiny difference in liquidity of tokens

this is notional right so this is 3.7

million op tokens are in velodrome but

the trading volume is like almost

basically the same so there's probably

some incentives or farming going on here

just given how big the difference is

between these two and the others but

it's just good to know if you're

interested in the specific pool

addresses you can put these into

optimism scan as well

all right

third final part let's understand

distributions so in this case I'm

looking at what percent of holders are

holding how many tokens all right so a

good cutoff point is normally 50 so if I

just try and find 50 roughly here

so it looks like 50 of wallets so 261

000 wallets hold 3.5 tokens so that's a

pretty small amount given we're about to

look at total Supply if all is an

exponential distribution not too

surprising given this is a governance

token and it's got like over 500 000

holders at this point right it's good to

know for some other tokens like FWB

you'll see like a much more even

distribution and like membership cutoffs

right so if optimism said like you have

to hold a minimum of 100 tokens to gain

access to something you'd probably see a

big like drop off at the 100 Mark

average Holdings to Total Supply so

there's a total supply of 4.29 billion

this is just the time series version of

this chart so I can see oh there was a

point in time where 50 of wallets held

like 122 tokens each but that's

basically decreased this tiny amount per

wallet could be a bunch of reasons for

this but it's something that I'd be

curious about digging more into because

like huh why are there so many wallets

with only like tiny amounts of op tokens

in it

the genie coefficient on Palm ratio I'm

not going to go too deep into it here

because of how I'll say unequal but how

like exponentially distributed this

curve is these two metrics aren't super

relevant here but if you're looking at a

smaller Community something under like

ten thousand or five thousand holders

then you really do want to look at these

metrics because like if it's only a 5

000 or like less person community like

it should be pretty evenly distributed

so

that's the token overview dashboard if

you have any suggestions you can just DM

me on Twitter or if you've put in a

token and found something interesting

yourself please just share the chart

with me or just share it on Twitter and

tag me I'd be very interested to see

what patterns people find on different

tokens and thanks again for optimism for

the retroactive public goods funding job

and I will see you all very soon