Ordinary investors can discover potential tokens by tracking "smart money", which are high-profit addresses, and paying attention to their trends can provide leading indicators. 1. Use tools such as Nansen and Arkham Intelligence to analyze the data on the chain to view the buying and holdings of smart money; 2. Use Dune Analytics to obtain community-created dashboards to monitor the flow of funds; 3. Follow platforms such as Lookonchain to obtain real-time intelligence. Recently, Cangming Qian is planning to re-polize LRT track, DePIN project, modular ecosystem and RWA protocol. For example, a certain LRT protocol has obtained a large amount of early deposits, a certain DePIN project has been continuously accumulated, a certain game public chain has been supported by the industry treasury, and a certain RWA protocol has attracted institutions to enter. But it is necessary to note that smart money is not absolutely correct. You still need to study the fundamentals and market structure yourself and gradually establish an analysis framework.

What is "smart money" and why you should pay attention to it

"Smart Money" does not refer to giant whales with large amounts of funds, but to addresses that show superb investment skills and profitability in the crypto market. They may be early successful project investors, top DeFi farmers, and money buds associated with well-known VCs or funds. Paying attention to their trends is equivalent to obtaining a market-proven "leading indicator", which can help us screen out more potential goals from a large number of projects.

Recommended global cryptocurrency security trading platform

• Binance Binance:
• Ouyi OKX:
• Gate.io:
• Huobi HTX:

The essential tool for tracking smart money

To track smart money yourself, you need to master some powerful on-chain analysis tools. The following are several recognized tools in the industry:

• Nansen

  This is a powerful paid platform. Through massive data analysis, it directly labels the address with "Smart Money" and other tags. You can easily see which tokens these smart money addresses are buying, selling or holding, and are a great tool to discover early opportunities.

• Arkham Intelligence

  Arkham is known for its powerful physical tags and visualization capabilities. You can use it to track the address of a specific fund (such as a16z, Paradigm) or well-known KOLs to see intuitively what new project contracts their funds are flowing to.

• Dune Analytics

  Dune is an open data analytics platform driven by the community. Countless data analysts have created various dashboards on it, including a large number of boards used to track smart money trends, new currency mine returns, and capital inflows in specific tracks. You can find and use these free resources by searching for keywords.

• Lookonchain / Spot On Chain

  These are more like news media that are on-chain data, and usually publish their analysis results on social platforms such as X/Twitter. They will actively monitor and report large amounts of movements in smart money, which is suitable for quick access to intelligence.

The potential tokens that smart money is betting recently

Through the analysis of the above tools, we found that smart money is quietly flowing into the following directions and representative tokens:

Category 1: Re-pled and newcomers with LRT track

Signal interpretation: With the popularity of the EigenLayer ecosystem, new liquidity re-staked tokens (LRT) and related protocols emerge one after another. Smart Money is actively involved in it to get early points, airdrop expectations and high returns.

Cases to follow: Taking a newly launched LRT protocol as an example, Nansen data shows that a large number of addresses marked "Airdrop Pro" and "DeFi Pro" were deposited in a large amount of ETH or stETH at the beginning of the protocol's launch. The dashboard on Dune also shows that the top 20 deposit addresses contribute more than 60% of the funds in the protocol's TVL growth curve, which is a typical early layout feature of smart money.

Category 2: DePIN projects with real-world connections

Signal Interpretation: Decentralized Physical Infrastructure Network (DePIN) has attracted much attention for its narrative that connects virtual and reality. Smart Money tends to invest in projects with actual implementation scenarios, clear business models and strong hardware partners.

Focus on case: A project focusing on decentralized AI computing power or wireless networks. Arkham data shows that some early investment money-buses associated with top hardware manufacturers and telecommunications have continued to propose the project tokens from exchanges over the past month. This continuous, small-batch accumulation behavior usually indicates long-term optimism rather than short-term speculation.

Category 3: Modular Ecology and Application Chain

Signal interpretation: Modular blockchain is a major trend in the industry. Smart Money not only focuses on the underlying public chains (such as Celestia), but also begins to lay out application chains or RollApp tokens built on them, especially those projects that have innovative gameplay in the fields of gaming and social networking.

Focus on case: A new game public chain based on modular architecture. On-chain data shows that the vault addresses of many well-known chain game guilds received large token transfers from the project party and were not sold immediately. This shows that the "industrial smart money" that deeply participates in the ecosystem is full of confidence in the future development of the project.

Category 4: RWA (Real World Assets)

Signal interpretation: Real-world asset tokenization (RWA) is considered to be the bridge connecting traditional finance with DeFi. Smart Money is looking for RWA protocols that are highly compliant, transparent in assets and can provide stable returns.

Focus on case: An RWA protocol focused on U.S. Treasury or private credit. By tracking its smart contracts, it can be found that some addresses marked as crypto funds are continuing to mint their tokenized asset vouchers. This shows that institutional-level "smart money" that pursues stability and low risk returns has begun to enter the market.

Summary and Tips

Tracking the on-chain footprint of smart money is a "golden shovel" to discover potential investment opportunities, but it is not a foolproof investment bible. Smart money can also make mistakes, and their investment cycles and risk tolerance are also different from those of ordinary investors. Therefore, after discovering the trend of smart money, you still need to conduct your own in-depth research (DYOR) to understand project fundamentals, token economics and market competition landscape.

Next step advice: Choose one or two of the above tools and start by tracking a smart money address or project you are interested in. Observe their behavior patterns, learn their analytical logic, and gradually establish your own on-chain analysis framework. In this transparent blockchain world, data is the biggest advantage.

The above is the detailed content of The flow of funds on the chain is exposed: What new tokens are being bet on by Clever Money?. For more information, please follow other related articles on the PHP Chinese website!