Xeptagon will be releasing and maintaining open-source repository for On-Chain Analytics
developed in partnership global research driven universities. But before we dive deep, let's
first get to know about the industry.
Blockchain is a distributed database or ledger that stores the record of transactions made
in cryptocurrencies like bitcoin, in digital format and shared among the nodes of a
peer-to-peer network. On-Chain Analytics is the act of analyzing all trading and investment
activity, extracted from this public ledger. This allows traders and investors of
cryptocurrencies to gain insights into the overall attitude and behavior of others in the
network. Furthermore, crypto is highly volatile and has large amounts of irreversible
transactions that make businesses and customers vulnerable to fraud.
Even though this is a relatively new field, a few big players such as Glassnode and
Cryptoquant are dominating the current market for On-Chain Analytics. But there are issues
with the existing tools. A couple to mention be the ambiguity of the methods used to derive
the analytics provided by these tools and the requisition of a subscription, making these
tools less reliable and affordable.
These observations led to Xeptagon initiating a solution, which is a proper open-source and
lightweight application for On-Chain Analytics with the possibility of extending in the
future to detects anomalies. The first phase of the development was carried out by the
students of School of Computing, National University of Singapore (NUS) as a capstone
project in partnership with Xeptagon. NUS is the No. 01 ranked university in Asia while being
8th in Global Employability, and 19th in World Reputation rankings.
The On-Chain Analytics platform provides users with two categories of metrics, basic and
computed. Basic metrics are those whose data is readily available without any need for
additional computation, while computed metrics are those whose values are derived from the
computation of basic metrics. For example, Market Value to Realized Value (MRVR) ratio to
understand whether a cryptocurrency is undervalued or overvalued, Spent Output Profit Ratio
(SOPR) to identify whether a crypto coin was sold at a profit or loss, and Relative
Unrealized Profit/Loss to gauge investor's sentiment, are few of the wide range of metrics
offered. These metrics have been consolidated based on their relevance and usefulness.
Initially On-Chain Analytics are calculated for Bitcoin (BTC) with metrics such as Average
Transaction Value, Average Transaction Fee, Average Coin Dormancy, Thermocap, Balanced Price,
Market Cap to Thermocap Ratio, Difficulty Ribbon, Market Value to Realized Value (MVRV)
Ratio, Market Capitalization, Net Realized Profit/Loss, Realized Price, Net Unrealized Profit
and Loss (NUPL), Realized Capitalization, Network Value to Transaction (NVT) Ratio, Relative
Unrealized Profit, Transferred Price and Spent Output Profit Ratio (SOPR) being produced
In addition to the metrics provided, Xeptagon has initiated development of an anomaly
detection framework to assist regulatory and audit purposes as well as to reduce fraudulent
cryptocurrency transactions. One such anomaly detection is 'Address Detection' to identify
the potentially dangerous address to transact and where there might be criminal activity
involved. The aim is to identify addresses that show signs of fraud daily via supervised
Going forward the project will be maintained in collaboration with top global research
universities under the sponsorship of Xeptagon. We are currently working on the hosting and a
live demo system. While the current stages only support Bitcoin, it will be expanded to cater
to other currencies like Ethereum (ETH), Tether USD (USDT - ETH), BNB, Cardano, Solana,
Polygon, AVAX among others.
Stay Tuned for the release of the live system!
Wanna be a part of this project? Contact us at email@example.com