The Week On-chain A Bitcoin Blockspace Boom Bitcoin blockspace experienced a historically significant inflow of demand last week, as speculators rushed to mint BRC-20 tokens via text inscriptions. This resulted in immense fee pressure, driving miner fee revenue towards ATHs, and surpassing the 6.25 BTC block subsidy for the fifth time.
Ethereum and DeFi Post-Shanghai: What Really Happened We previously simulated the potential economic outcomes of ETH withdrawals enabled by the Shapella upgrade. In this edition, we will examine what actually happened to the 1.55M withdrawn ETH, and how stake has reshuffled between stakers, staking service providers, and sell-side pressure.
The Week On-chain Ancient Supply, Mt Gox, and US Government Coins This week, the market experienced a sharp sell-off, following what turned out to be false rumours related to distributions by the Mt Gox Trustee, and the US Government. Add to this the revival of 3.2k ancient Bitcoin, and the market found itself amidst serious volatility.
The Week On-chain The Allure of Profit After an incredible quarter of price performance, Bitcoin price action has taken a breather. In this edition, we evaluate participant spending behavior to assess the markets conviction towards the prevailing trend.
The Week On-chain Is the Bitcoin Bear Behind Us? Bitcoin has posted the strongest price performance since the market all-time-high, with several on-chain indicators signalling strength in support. In this edition, we assess whether the Bitcoin Bear may be behind us, and if a robust recovery is underway.
Ethereum and DeFi Simulating Shanghai Sell-side: Investigating the Ethereum Unlock The highly anticipated Shanghai/Capella hard fork is scheduled to take place on 12-April-2023, which enables withdrawals of staked ETH. In this piece, we establish cohorts of stakers, and assess the potential sell-side pressure which may occur due to the unlock event.
The Week On-chain The Binance Stablecoin Shuffle With Binance firmly in the cross-hairs of US regulators this week, we investigate how the market has responded by deep diving into net coin flows through the exchange. We also assess the supply dynamics of Bitcoin, to gauge the shaking of holder confidence.
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The Week On-chain The Price of Time After several weeks of out-performance by Bitcoin prices, the market is taking a breather. Within this consolidation, we will gauge investor confidence in the uptrend using a suite of on-chain tools, ranging from exchange flows, to profit taking, and coin holding times.
Bitcoin Analysis & Research Estimating the Cost of Bitcoin Production The Bitcoin difficulty adjustment is one of the most remarkable of Satoshi's innovations, creating a system that autonomously seeks equilibrium in the mining sector. In this article, we estimate the cost of production, and derive several metrics describing the cyclical nature of the mining market.
The Week On-chain Bitcoin Shifts Up A Gear Bitcoin has out-performed this week, rallying 35.8% against a backdrop of challenging conditions for the traditional financial and banking system. In this edition, we explore how Bitcoin appears to be shifting up a gear, and rallying out of deep bear market territory.
Product Introducing Point-in-Time Data: Addressing the Mutability of On-chain Metrics We discuss when and how quickly on-chain metrics at Glassnode get updated and analyze the impact and magnitude of data updates. Further, we introduce a broad set of point-in-time metrics that do not suffer from look-ahead bias, making them the ideal candidates for applications in backtesting.
Bitcoin Analysis & Research The Shrimp Supply Sink: Revisiting the Distribution of Bitcoin Supply The supply distribution of Bitcoin continues to be a topic of great interest, for analysis of capital flows, and also for observing behaviors of investor cohorts. In this piece, we break down the BTC supply by wallet size, and explore how coins disperse over time.
The Week On-chain Three Fallen Banks After one of the most consequential weeks of 2023, the digital asset industry is short three crypto friendly banking institutions in the US. However the principle investor response thus far appears to be a seeking safety in the most trustless major assets BTC and ETH.
The Week On-chain Market Meets Psychological Resistance Bitcoin prices have been rejected from a series of psychological on-chain levels, related both to Older hands from the 2021-22 cycle and also for the Whale cohort. Profit-taking and capital flows have started to take place, although they remain low by historical standards.
Blog February 2023 Product Updates The start of 2023 has been explosive for the digital assets landscape, with Bitcoin recording a 41% move upwards YTD, as well as significant regulatory challenges developing in the USA. We have also seen the unexpected phenomena of Ordinals and Inscriptions arise on the Bitcoin blockchain, sparking healthy debates regarding
The Week On-chain NFT Trading Professionalizes Despite bearish sentiment, and an overhang of regulations, the application layer of Ethereum continues to flourish. The NFT market is experiencing great competition, with new marketplace Blur taking market share from leader OpenSea, driven by a strategy focused on traders and liquidity.
Bitcoin Analysis & Research Mastering the MVRV Ratio The MVRV Ratio is one of the most popular and widely used on-chain metrics, however, much of the power of MVRV is rarely put to use. In this paper, we will explore how MVRV can be supercharged to find cycle extremes, identify market trends, and get advanced warning of sell-side distribution.
The Week On-chain An Investor Turning Point Despite continued regulatory pressure on digital assets exerted by the US, Bitcoin prices still rallied above $25k, and Inscriptions breached 100k total. Meanwhile, investor behavior on-chain appears to be reaching a turning point, hinting at a new cycle.
Bitcoin Analysis & Research Ordinal Theory and the Rise of Bitcoin Inscriptions Recent weeks have seen an very unexpected trend emerge on the Bitcoin network, being the permanent and immutable inscription of data, directly into the Bitcoin blockchain. Data files that have been inscribed range from images, to audio clips, and even a version of the video game Doom. This event has
The Week On-chain The Emergence of Ordinals The digital asset market has experienced its first significant pullback of the year, alongside news of heavy US regulatory moves, and SEC crackdowns. Simultaneously, the emergence of Ordinals and Inscriptions on Bitcoin is creating a new, and unexpected demand for blockspace.
The Week On-chain Shifting Tides Following an explosive month of volatile price action, Bitcoin is consolidating above the on-chain cost-basis of several cohorts. This puts the average BTC holder into a regime of unrealized profit, and demonstrates a potential turning of the macro market tides is underway.
The Week On-chain Short Squeezes and Spot Demand Bitcoin markets have seen the strongest monthly price performance since Oct-2021, fuelled by both historic spot demand, and a sequence of short squeezes. In this edition, we explore the dynamics taking place in both derivatives markets, and the spot exchanges.
The Week On-chain An Opportunity, or a Trap? The recent market rally has pushed BTC prices above $23k, and has surprised many investors. However, alongside higher prices, comes an increased motivation for holders and miners to take exit liquidity, especially after the prolonged and painful bear of 2022.
Bitcoin Analysis & Research Ten Indicators for Tracking a Bear Market Recovery Identifying cycle changes is no easy feat, and there remains no single silver bullet to accomplish this task. In this report, we explore a suite of ten indicators which provide a useful toolbox for navigating these later stages of Bitcoin bear markets.
