Crypto projects, which include not just coins, but an entire ecosystem, are becoming increasingly popular among investors. In this case, the prospects depend not so much on the coin itself as an asset, but on demand for the services a project provides.
A good example of it is the Chainlink (LINK) network. Let’s find out what features make this project unique and what services can be used to analyze it.
What’s Chainlink (LINK)?
Some sources confuse “Chainlink” and “LINK” as interchangeable concepts, but this is not entirely correct.
Chainlink is a decentralized oracle network introduced in 2017, whose task is to verify and validate data from external sources for smart contracts on the blockchain. This is how the interaction of the traditional market and the blockchain happens.
In turn, link coin is a native cryptocurrency used as a means of payment for chainlink node operators.
Chainlink announces that they are the largest provider of decentralized oracles in the crypto industry. The technology is in demand both in the field of decentralized finance and among organizations not associated with the blockchain, but using traditional information technologies.
The principle of operation is the following: oracles provide external data that launch smart contracts when certain conditions are met. Network participants provide smart contracts with access to external data for which they receive a reward.
A distinctive feature of the Chainlink network is the decentralized nature of the oracles and the resulting resistance to manipulation and failure.
Initially, the project worked on Ethereum, but over time it began to support Solana and is compatible to Ethereum networks: BNB Chain, Arbitrum, Polygon, Avalanche, etc.
How to analyze a project using global aggregator sites?
Investors can choose from a variety of services that accumulate lots of information about everything related to cryptocurrency. Using their services, you will be able to make more informed decisions and thus minimize your risks.
Consider a couple of popular services and find out how they can be useful for you.
One of the main features of cryptocurrencies is volatility: price can change because of any events. The crypto industry is in a stage of constant development, as a result of which it is almost impossible to independently track all the events of the crypto world that can affect price movements.
This is exactly what the CoinMarketCal service, a cryptocurrency calendar that informs about all upcoming coins-related events, is designed to help with.
The platform has a fairly simple but effective principle of operation. Cryptoworld events added by users are checked for veracity by voting. Thus, the events that received negative votes are eliminated.
In a few clicks, you will get acquainted with all the events for a certain period that, in your opinion, may affect the price of a particular cryptocurrency.
Coin Metrics provides financial information, market data, network data, and other analysis tools. The platform gives access to more than 100 assets and more than 400 indicators, such as free float and market capitalization. After adding metrics to their chart, users can load it in various extensions using the Coin Metrics network data visualization tool. To access Pro metrics, you must fill out a contact request and obtain the corresponding API key.
CoinGecko is a data aggregator that analyzes cryptocurrency prices by market cap. The service has information about more than 12,000 cryptocurrencies and over 600 cryptocurrency exchanges. The functionality of the service does not end with tracking the capitalization of cryptocurrencies and the trading volume of exchanges. CoinGecko also offers an in-depth analysis of the crypto market and a number of convenient features: comparison of cryptocurrencies, a converter of cryptocurrencies to fiat, etc.
By getting a premium account, users get more advanced functionality and no ads.
Glassnode is a network analytics platform that aggregates data from a range of different blockchains to accurately measure cryptocurrency network activity. The metrics and information necessary for investors are formed based on the collected data. Glassnode can be used to study the market indicators of any cryptocurrency or view the number of active addresses with successful transactions.
Using data science and machine learning, Glassnode helps investors make informed decisions in an overly emotional and irrational market, and provides blockchain teams with valuable insights into their projects and coins. Users get free access to “Level 1” information updated every 24 hours. Paid subscriptions are also available, offering access to additional data and more frequent data updates.
Before investing in a cryptocurrency, it is necessary to check the history of a particular cryptocurrency. Otherwise, there is a risk of investing in a project already dead, since cryptocurrencies can die if they are not supported, improved, and developed.
That is why monitoring the development of crypto projects is extremely important. You can get the necessary information on Github, but this is not always convenient, especially if you need to analyze the development history of several cryptocurrencies at once.
Investors are helped by the CryptoMiso service, which ranks cryptocurrencies according to the activity criterion on Github. Users can check the number of commits made by a certain crypto project in a certain period based on the most popular repository.
You should never forget that rushed decisions can lead to increased risks and serious losses. Before investing in a particular cryptocurrency, it is necessary to study all available information about it and take the current market situation into account.
Using analysis tools will give you some idea of the possible price movement of a cryptocurrency. At the same time, it is recommended to use several tools and form a conclusion based on all the information received.
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