Altcoin Chainlink On-Chain Activity Makes It A Standout In Crypto Market
The crypto market is a new and emerging asset class that – due to the various innovation factors, its speculative nature, and the technological intricacies of each individual coin – makes assigning a value to any altcoins exceedingly difficult to pinpoint with any sort of accuracy.
Crypto analysts use a variety of metrics to determine any fundamental benefits that could affect the long-term price growth of the asset. One such metric is on-chain activity, and according to a prominent crypto analyst, few altcoins are as “attractive” as Chainlink – a crypto asset that recently took the market by storm – when comparing on-chain activity data.
Chainlink On-Chain Activity Among Strongest in Altcoin Market
On-chain activity is a data point crypto analysts often look at when performing fundamental analysis of a crypto asset. On-chain activity represents all of the transactions being broadcast across a crypto asset’s network and includes everything from payments, to transferring funds to exchanges or wallets, and more. The idea is, the more activity the crypto asset has on its network, the more valuable that network is and can grow larger more rapidly via a network effect.
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When it comes to the altcoin market, on-chain activity is dwindling across the space as the hype and interest in crypto and blockchain has fizzled and begun to instead focus on Bitcoin and its new narrative as a safe haven asset. However, there is one “attractive” standout, according to prominent crypto analyst Josh Rager, and that’s Chainlink, an altcoin that enjoyed its time in the limelight in recent weeks as it made headlines and went on a powerful rally.
Looking into #onchain network activity can be a good way to select assets to invest in during the bull market
e.g. $LINK has shown significant growth in transfers w/ each passing month. Useful metric to see increasing token interest & usage @glassnodehttps://t.co/17WnXS3ZMp pic.twitter.com/8F52iOyh6W
— Josh Rager (@Josh_Rager) August 13, 2019
Rager says that on-chain network activity can help investors select assets more apt to perform during a bull market, and the “significant growth” Chainlink has seen in transfers each month shows a boost in token interest and usage. Because of the steady and significant growth, Rager says that “Link looks more attractive on-chain than [the] majority of altcoins.”
How On-Chain Activity Helped Spot Obvious Crypto Climax
On-chain data as a metric crypto analysts and traders can use to determine price movements and trends doesn’t stop at showing investors which assets to load up on for bull markets. It also can help spot a climax in surging interest, which could also help investors understand when best to sell the asset in order to buy back later at a cheaper price.
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On-chain activity in Chainlink clearly showed a “obvious climax” in interest, according to crypto analyst NebraskanGooner. In a Glassnode chart shared by the analyst, on-chain transfers peaked the same time that Chainlink’s bull rally did, and helped time the buying climax.
Obvious climax here too. pic.twitter.com/VJtBZVPrMv
— NebraskanGooner (@nebraskangooner) August 13, 2019
Had Chainlink holders sold at the peak of transfers, they also would have sold the top of the rally. On-chain activity could be a helpful weapon in the arsenal of any trader or analyst hoping to gain an edge in the crypto market.
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