Reason to trust
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
On-chain data shows new investors have been coming into Chainlink (LINK) as the MVRV Ratio signals a potential long-term opportunity for the asset.
Chainlink Has Seen Its Total Holder Count Reach A New High
In a new post on X, the analytics firm Santiment has discussed about the latest trend in the Total Amount of Holders metric for Chainlink. This indicator measures, as its name suggests, the total number of addresses on the LINK network that are carrying some non-zero balance.
Below is the chart shared by Santiment that shows how the value of the metric has changed during the past year.
As displayed in the graph, the Total Amount of Holders observed an inflection point earlier this year and has since been climbing up at a notable rate. This suggests that new non-empty wallets are popping up on the network.
This kind of trend can arise due to a number of reasons. Fresh investors coming into the space or old ones who sold before making a return naturally contribute to an increase in the indicator. Another factor could be existing users creating new wallets to distribute their holdings or for privacy purposes.
In general, all of these could be assumed to be occurring simultaneously to a degree whenever the Total Amount of Holders goes up. As such, the recent uptrend in the metric could indicate that some net adoption (that is, the influx of new investors) has steadily been taking place for Chainlink.
Over the past month, 7,903 new non-zero balance addresses have joined the chain, bringing the Total Amount of Holders to a fresh all-time high (ATH) of 769,380.
In the same chart, the analytics firm has also attached the data of another indicator: the Market Value to Realized Value (MVRV) Ratio. This metric basically compares how the value held by the BTC investors (the market cap) compares against the value put in by them (the realized cap).
In other words, the indicator tells us about the profit-loss balance of the holders. Here, the version of the MVRV Ratio that’s relevant is the 365-day version, capturing the situation of the investors who bought their coins within the past year.
From the graph, it’s visible that the 1-year MVRV Ratio of Chainlink is currently sitting at a negative 17.3%, an indication that these traders are, on average, holding a loss of 17.3%.
Generally, however, investors being underwater isn’t actually a bad thing for the cryptocurrency. This is because holders in profit are the ones more likely to participate in selling. As such, Santiment notes that the trend in the 365-day MVRV Ratio could suggest the asset’s “long-term investing timeframe is in an opportunity zone.”
LINK Price
At the time of writing, Chainlink is trading around $13.15, up more than 2% in the last seven days.
Featured image from Dall-E, Santiment.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
