Prospects of On-Chain Metrics

December 21, 2022
Photo by Lukas on Pexels

The current state of on-chain metrics has been remarkable despite being in its early stages, as it is able to bring value not just on investment decisions but also in understanding the broader picture of the blockchain. On-chain metrics' potential future is something to be excited about. Let’s discuss some prospects in on-chain metrics. 

Area of Growth in DeFi

The use of decentralized finance (DeFi) applications is one potential area of growth for on-chain metrics. DeFi applications, which are based on blockchain technology, enable users to gain access to a variety of financial services such as lending, borrowing, and trading without the use of intermediaries. As the use of DeFi applications grows, so will the need for on-chain metrics to track and measure the performance of these applications.

Increase in the Number of On-Chain Metrics

As mentioned in the second article on on-chain metrics, as blockchain data becomes more publicly available, more and more types of on-chain metrics emerge. Currently, at least 200 on-chain market indicators for various cryptocurrencies are present. That being said, it can be implied that leveraging blockchain data to produce data-driven insights has been increasing. As state-of-the-art analytics is continuously applied to blockchain data, more on-chain metrics shall surface which will offer a more concrete, overarching outlook on the blockchain.

More Democratized

Currently, some on-chain metrics are free to access on sites such as Glassnode and IntoTheBlock. However, not all metrics are offered for free. Furthermore, some metrics may be overwhelming for some to digest at first glance. Democratizing on-chain metrics would entail an opportunity for everyone to have a view of what is happening on the blockchain. Also, if not all, providing most of the metrics for everyone would significantly help eradicate the noise surrounding the blockchain. This would result in inclusion, fostering the public to be informed in a data-driven approach with regard to the activities on the blockchain.

More Adoption

Given that on-chain metrics will be more democratized, the public would be less restricted in utilizing the metrics in their investment decisions. Hence, more adoption would take place. Still, if the public is not well-informed about using the metrics and their advantages, adoption would be held back. This is why educating everyone about on-chain tools is necessary for more adoption. 

As the use of blockchain technology and cryptocurrencies grows and evolves, on-chain metrics are likely to become even more important. As more organizations and individuals adopt blockchain-based solutions for a variety of applications, the demand for accurate and reliable on-chain metrics will grow.

Furthermore, as the blockchain ecosystem becomes more complex and diverse, new and more sophisticated on-chain metrics are likely to be developed to assist us in understanding and navigating this rapidly changing landscape. These metrics may include advanced statistical techniques, algorithms, and other tools to assist us in extracting insights and making better decisions based on blockchain data.

Overall, on-chain metrics have a promising future because they continue to play an important role in the world of blockchain and cryptocurrency.

Get connected with Cole through our Facebook Community!

We are making crypto knowledge-sharing even more accessible to everyone by giving an avenue for Filipinos to connect about all-things crypto in Facebook. Be part of our community today.

Go to Our Page