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Analysis of LINK active users, total number of transactions and holding time of transacted coins
Chainlink is a platform that provides connections between blockchain smart contracts and external data sources. It is essentially a decentralized oracle network that enables smart contracts to access real world data. This allows smart contracts to interact with off-chain resources. In this way, Chainlink enables the creation of more complex and useful decentralized applications on the blockchain.
Chainlink staking is a process by which users can earn rewards by holding and locking up a certain amount of the platform’s native token, LINK. In this process users earn rewards for helping to secure the Chainlink network. This new initiative was launched and opened to general access on December 8th 2022. In this article we explore the on-chain behavior of the LINK token holders following the release of its staking mechanism.
During the community launch day, the second highest year to date active addresses number was recorded. These are addresses that made one or more on-chain transactions on this specific day.
Source: IntoTheBlock’s Chainlink Analytics
It surpassed the 10k active addresses mark. In the year to date spam time, the only other date that surpassed December 8th was November 13th, this high activity can be related to the FTX collapse crisis. The indication of high interaction from the community on the day of a product launch can be perceived as a good sign, since it shows its potential success. In addition it also suggests that there is demand for it and that it is providing value to its users.
As a result of the high activity that the active addresses generated, the number of transactions recorded also reached its second highest level year to date. This further reapproves the high engagement from the community with the new staking product.
Source: IntoTheBlock’s Chainlink Analytics
A total of 13.8k transactions were made on December 8th, which generated a total volume of 41.16 million LINK. This equals to $285 million transacted in total volume in USD terms. This helps to further illustrate the level of engagement that the staking product launched received.
Furthermore, addresses marked as long term holders also actively engaged with the new mechanism. Averaging 2 years of time held for the coins transacted on December 8th.
Source: IntoTheBlock’s Chainlink Analytics
Adoption from the most loyal believers in a protocol is important because these are the people who are usually most invested in the protocol and have the most to gain from its success. Typically this group of holders are the most active users and the advocates of the protocol and as a result are the ones with deeper understanding of its features and benefits.
Besides having high engagement and long term investors supporting the staking initiative, it also received fast adoption. The vault reached its initial staking limit deposit the same day it was opened for general access deposits.
Source: Etherscan
Fast adoption is generally considered to be good, in this case it indicates that the staking product gained quick traction. This can be an important indicator as it shows the potential demand for the future of the product.
In conclusion, the initial launch of Chainlink Economics 2.0 with its v0.1 phase has shown positive and quick adoption by the community. Active addresses numbers showed the on-chain interest by the community, while the holding time of transacted coins illustrated how the most loyal believers of the protocol invested into the new mechanism. As the Economics 2.0 gets developed into its v1 and v2 version new features will be added to the staking mechanism, ultimately bringing the product into its final stages.
On-chain Analysis of Chainlink’s Staking Program Launch was originally published in IntoTheBlock on Medium, where people are continuing the conversation by highlighting and responding to this story.
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