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 reached a price of $64,210.2, with a market capitalization of up to $1.56 trillion. Ethereum (ETH) was priced at $1,894.28. The market moves through volatility, and on-chain data is becoming an increasingly important navigation tool. Experienced traders are beginning to use decentralized exchange (DEX) tools to monitor on-chain activity in real time and track the movements of “Smart Money.”
Market Indicator: How Smart Money Dominates Market Trends
In the current cryptocurrency market, a key indicator is the so-called “Smart Money” behavior. These “Smart Money” entities typically refer to experienced investors, institutions, or “whale” addresses, whose actions often signal the next market move. A 2025 data analysis indicates that Smart Money is systematically executing several key strategies. The most important of these is continuously increasing holdings and locking in ETH. Data shows that over the past five months, whale addresses holding between 1,000 and 100,000 ETH have seen their total holdings grow by approximately 14%. This behavior demonstrates strong confidence in Ethereum’s long-term fundamentals.
Another notable trend is that Smart Money is heavily investing incremental funds into Ethereum’s Layer 2 (L2) networks and re-staking (Restaking) in advanced staking scenarios. Meanwhile, the total supply of stablecoins has surpassed the new milestone of $280 billion and continues to see monthly net growth. This segment of Smart Money has ample “ammunition” and is ready to enter the market swiftly when opportunities arise.
Smart Tracking: From Whale Movements to Precise Market Psychology Capture
Smart traders use a systematic approach to track and analyze these on-chain signals. This process involves more than technical analysis; it requires a deep understanding of trading psychology and market behavior.
A seasoned on-chain analyst shared his tracking framework. He emphasized: “Trading is a game. Wallet tracking is a maze. Every profitable wallet proves someone has found the exit.” His method includes setting precise filtering criteria, such as configuring charts with 1-minute candlesticks and daily trading timeframes to capture subtle buy/sell timing and the full performance of tokens.
Tools like DEX Screener are central to this process, providing comprehensive information such as wallet entry times, trading volume, and market cap, offering sufficient depth for analysis. Analysts record abnormal activities, such as wallets that spend little but hold large unrealized gains, which could serve as important market signals. Additionally, specialized tools like “Whale Watch” are used to track whale activities and fund flows across different tokens. Observing these whales’ buying patterns and timing can reveal recurring market behavior patterns.
Tool Evolution: Distributed Tracking and AI-Driven Next-Generation Trading Platforms
As the demand for on-chain data tracking grows, related technological tools are continuously evolving. Distributed tracing technology is now applied to monitor blockchain transaction flows, linking cross-node transactions via unique identifiers to provide end-to-end visual analysis.
In smart contract monitoring, these tools can combine with contract call stacks to generate tree structures, clearly indicating execution time and resource consumption for each contract function. This is especially critical for optimizing Gas fees or troubleshooting security risks.
The more cutting-edge development is the integration of AI with on-chain trading. Emerging platforms like DexOne use proprietary algorithms to track whale transactions in real time, analyze their trading intentions deeply, and execute automated strategies at millisecond speeds. These platforms’ “Resonance Signal” features capture synchronized behaviors of multiple Smart Money actors using AI algorithms, providing high-probability trading signals for ordinary traders. This marks the beginning of a new era where on-chain monitoring shifts from manual analysis to intelligent automation.
Platform Integration: How Gate DEX Combines On-Chain Monitoring and Strategy Execution
Against this backdrop, Gate DEX, as a new decentralized trading hub, is redefining the on-chain trading experience. It consolidates fragmented tools and disjointed processes into a seamless experience. Its core goal is not merely to launch another DEX but to rethink: if on-chain trading is to become mainstream, how should the entry point be designed? Gate DEX positions itself as an on-chain financial hub that offers deep trading, asset security, and operational efficiency. Specifically, Gate DEX integrates spot trading, derivatives trading, cross-chain swaps, and Meme Go on-chain analysis tools, the latter dedicated to Smart Money tracking and strategy interpretation. Users can complete the entire process—from observation and trading to asset allocation—without switching platforms.
For asset security, Gate DEX adopts a non-custodial architecture, with all assets held by users on-chain. The platform’s wallet operates within a TEE (Trusted Execution Environment) secure execution environment, maintaining private key control while reducing operational barriers and risks. Notably, Gate DEX includes Gate Perp DEX, supporting leveraged trading up to 125x, with market orders, limit orders, and stop-loss/take-profit features. This design allows users to track Smart Money movements and execute strategies swiftly.
Practical Guide: From Monitoring to Decision-Making Workflow
For investors aiming to leverage on-chain data to improve trading performance, establishing a systematic monitoring and decision-making process is crucial. Here are some practical tips:
Stablecoin supply is a key indicator of market liquidity. Data from 2025 shows stablecoin supply grew from about $200 billion to $305 billion, reflecting deeper on-chain utility rather than short-term speculation. Investors should pay particular attention to the “velocity” of stablecoins—the ratio of trading volume to market cap. This metric helps distinguish active usage from mere hoarding and is a clear indicator of market vitality in 2026.
To identify Smart Money activity, it’s recommended to focus on new token pairs and old tokens that have bottomed out. Watch wallets that bought and held during token issuance, or look for patterns of wallets that bought tokens that went to zero or bottomed out and sold at high points. Building your own “signal observation archive” is also key—record wallets holding large unrealized profits that still haven’t sold, as these can be important market signals. But also learn to differentiate between “blind hope” and “firm conviction.” Finally, analyze across multiple timeframes: use 1-minute K-lines for precise entry/exit points, while observing the full lifecycle of tokens on daily or longer-term charts, especially identifying key support and resistance levels.
At this very moment, the world’s Smart Money is adjusting positions: some are continuously increasing ETH holdings and locking in profits, some are investing in Ethereum Layer 2 networks, and others are maintaining ample stablecoin reserves—like arrows on a bow, ready to shoot at the next market opportunity. These actions are silent but clearly recorded on the blockchain. With modern tools like Gate DEX, every trader has the chance to decode these data signals and turn on-chain insights into actionable strategies.
When ordinary candlestick charts and on-chain data streams converge on the same interface, the whale trajectories hidden behind countless transactions finally become clear.