{"id":12123,"date":"2022-01-05T02:00:00","date_gmt":"2022-01-05T02:00:00","guid":{"rendered":"http:\/\/ci02966555a00026c3"},"modified":"2025-01-29T13:01:42","modified_gmt":"2025-01-29T13:01:42","slug":"ark-invest-on-chain-white-paper-summary","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/ark-invest-on-chain-white-paper-summary","title":{"rendered":"ARK Invest On-Chain White Paper Summary"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><strong><em>The below is from a recent edition of the Deep Dive, Bitcoin Magazine&#8217;s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, <\/em><em><a href=\"http:\/\/deepdivebtc.substack.com\/welcome\" target=\"_blank\" rel=\"noopener\">subscribe now<\/a><a href=\"https:\/\/members.bitcoinmagazine.com\/\"><\/a><\/em><em>.<\/em><\/strong><\/p>\n<p>In today\u2019s Daily Dive, we\u2019re highlighting the latest ARK Invest Bitcoin white paper, \u201c<a href=\"https:\/\/research.ark-invest.com\/hubfs\/1_Download_Files_ARK-Invest\/White_Papers\/ARKInvest_123021_Whitepaper_OnChainData.pdf?hsCtaTracking=83152a39-718c-4d7f-bac4-79b73903df0c%7Cc686850c-7d2e-42ba-988b-fbd0fef94f06\" target=\"_blank\" rel=\"noopener\">On-Chain Data: A Framework To Evaluate Bitcoin<\/a>.\u201d The paper was authored by Yassine Elmandjra, analyst at ARK Invest and David Puell, on-chain analyst and market researcher. Both are leading analysts in the space with a history of exceptional work. We will summarize their recent white paper and provide some Deep Dive resources to supplement. <\/p>\n<p>TLDR: The white paper\u2019s aim is to help investors understand how to analyze and value bitcoin just like other traditional assets. The paper highlights Bitcoin\u2019s real-time, global public ledger as a unique toolset and walks through some key on-chain metrics to understand. <\/p>\n<p>Elmandjra and Puell start by breaking down on-chain data into three distinct layers across network health, buyer and seller behavior and asset valuation. Each layer is tailored to a different group of market participants.&nbsp;<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/layers-of-bitcoin-network-health.png\" title=\"\"><\/figure>\n<p>The network health layer covers monetary integrity, security and usage of the Bitcoin network. Evaluating address supply distribution, supply in addresses holding fewer than 10 BTC has increased since 2013.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/bitcoin-addresses-supply-distribution.png\" title=\"\"><\/figure>\n<p>Transaction volume and velocity are ways to measure the health of the network. Transaction volume is approximately $53 million per day. Annual velocity reached a bottom in April 2021 which could be a result of investors diversifying into other cryptocurrency assets or because transaction activity is moving back on-chain. <\/p>\n<p>For a deeper look into the total transaction volume of the network and the efficiency of the network, see <a href=\"https:\/\/deepdivebtc.substack.com\/p\/the-daily-dive-108-bitcoin-the-most\" target=\"_blank\" rel=\"noopener\">The Daily Dive #108 &#8211; Bitcoin: The Most Efficient Value Settlement Network<\/a>.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/bitcoin-transaction-volume-and-velocity.png\" title=\"\"><\/figure>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/deep-dive-25-promo.jpg\" title=\"\"><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The paper highlights Bitcoin\u2019s real-time, global public ledger as a unique toolset and walks through some key on-chain metrics to understand.<\/p>\n","protected":false},"author":2736,"featured_media":10957,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[395,85,312,1741],"class_list":["post-12123","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-ark","tag-bitcoin-magazine-pro","tag-institutions","tag-on-chain-data"],"author_data":{"id":2736,"name":"Dylan Leclair And Sam Rule","nicename":"dylan-leclair-and-sam-rule","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/2b6b26c44e1d269b6e0f99be25243a520901d88fba7899ea664ee1c543b3ff6d?s=96&d=robohash&r=g"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/choose-bitcoin.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/12123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2736"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=12123"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/12123\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/10957"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=12123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=12123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=12123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}