GlossaryAdvanced
Entity Clustering
An on-chain analysis technique that groups multiple wallet addresses believed to be controlled by the same real-world entity.
Entity clustering is an on-chain analysis technique that groups multiple wallet addresses believed to be controlled by the same real-world entity, generally based on behavioral patterns such as addresses that are frequently funded from or send to each other, or addresses that are spent together within the same transaction.
Entity clustering is foundational to most sophisticated on-chain analysis — individual addresses alone can significantly understate how concentrated actual ownership is, since a single entity (such as one large holder or one exchange) commonly controls many separate addresses.
Examples
- Entity clustering might group dozens of separate addresses together, revealing they're all controlled by the same exchange or large holder.
- Looking at individual addresses alone, without entity clustering, can significantly understate how concentrated actual on-chain ownership really is.