Crypto Analyst Josh Rager Examines On-Chain Network Activity for Chainlink

Siamak Masnavi

Prominent crypto analyst and trader Josh Rager explains how looking at on-chain network activity can be a good way to discover which altcoins to invest in. He uses Chainlink (LINK) as an example.

Rager, who is also a Co-Founder of online crypto learning platform Blockroots, as well as an advisor to several blockchain startups, used on-chain market intelligence platform Glassnode to look at several on-chain metrics for Chainlink (LINK). 

Glassnode believes that the problem with conventional valuation metrics is that they "don’t provide enough valuable information about the new crypto asset class; they are too noisy, too easy to manipulate, and too low-fidelity when applied to blockchain assets."

In contrast, it says that on-chain data "enables the development of a new generation of metrics," which "can more precisely measure relevant economic activity in crypto networks, allowing stakeholders to make better informed decisions and more accurate predictions."

In particular, when examining Chainlink's transactions with Glassnode Studio, as he notes in the tweet below, he noticed that Chainlink has "shown significant growth in transfers w/ each passing month," which he says suggests "increasing token interest & usage."



Here are the on-chain metrics available in Glassnode Studio (although it should be noted that not all of them are applicable to every digital asset):

  • Indicators: Spent Output Profit Ratio (SOPR); NVT Ratio; Average Coin Dormancy; and Supply adjusted Dormancy
  • Addresses: Active Addresses; New Addresses; Sending Addresses; and Receiving Addresses
  • Exchanges: Exchange Inflow (Total); Exchange Outflow (Total); Exchange Deposits; and Exchange Withdrawals
  • Fees: Fee (Total); Fee (Mean); Gas Used (Total); Gas Used (Mean); Gas Used (Median); Gas Price (Mean); Gas Price (Median); Transaction Gas Limit (Mean); and Transaction Gas Limit (Median)
  • Transactions: Transaction Count; Transaction Rate; Transfer Count; Transfer Rate; Transfer Volume (Total); and Transfer Volume (Mean)

When some people replied to Rager's tweet to ask him to elaborate on what he had said about Chainlink, he answered:

Indeed, although the LINK price has gone down quite a bit since it reached its all-time high (ATH) on June 29, LINK remains the top performing cryptoasset of 2019, with its price having gone up over 693% this year.

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Ukrainian Railways Uncovers Bitcoin Mining Farm at Lviv Branch

On Friday (November 15), the state-owned Ukrainian Railways ("Укрзалізниця" in Ukrainian, which is pronounced "Ukrzaliznytsia") announced that it had found out that its Lviv branch was illegally operating a Bitcoin mining farm powered by the company's electricity (which is paid for by taxpayers in the country).

Ukrzaliznytsia's press release stated that its security department, along with law enforcement officials, had found a Bitcoin mining farm during an inspection of the premises of the Lviv branch; this "so-called farm" was being "organized by officials of the Lviv Railway unit." 

The person who filed the report on the alleged criminal activity was Oleg Nazaruk, who is the Director of the Department of Economic and Information Security of Ukrzaliznytsia JSC.

Nazaruk said:

During the inspection of the premises where the so-called farm was located, more than 100 pieces of computer equipment were identified that were generating bitcoins. The aforementioned equipment was connected to the Ukrzaliznytsia power grid. The estimated amount of losses since the beginning of the year is UAH 1 million.

The press release interestingly mentioned that, according to the laws of Ukraine, "the issue and circulation of cryptocurrency in the territory of Ukraine is prohibited."

The collected evidence has been passed to the Ternopil Police Department of the Main Directorate of the National Police in Ternopil Oblast.

According to a report by Kyiv Post, this is not the first time that state employees in Ukraine have been caught stealing electricity to mine cryptocurrencies. Back in August 2018, Ukraine's national security agency (SBU) arrested workers at a nuclear power plant (in the city of Yuzhnoukrainsk ) who were illegally mining crypto using electricity from the plant.

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