Godfrey Benjamin
With Bitcoin (BTC), there are numerous metrics that need to be tracked. Here are three of the least discussed
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Bitcoin (BTC) remains the world's most capitalized digital currency and receives a lot of attention as a driving force in the industry. Many people track the price of the digital currency using tools like CoinMarketCap and a number of unique metrics that contribute to Bitcoin's growth and performance and are rarely mentioned. This article looks at three of these on-chain metrics.
Addresses by held time
An important feature of Bitcoin is its limited supply of 21 million. With a circulating supply of 19,571,581 BTC, getting the coin is a luxury even if exchanges currently have an excess of demand.
Based on this, a class of address holders called “Holders” helps solidify the coin’s growth.
Holders or addresses that have held their BTC for more than a year account for 69.23% of all addresses holding the coin. This beats the combination of “cruisers,” or accounts that sell regularly, at 23.99%, and “traders,” or those that have existed for at least three months, at 6.78% of all addresses.
Network difficulty
Bitcoin network difficulty, measured by hashrate, is also an important metric that determines the speed of BTC production. According to Blockchain.com, the current hashrate is 493,313,217.742 TH/s, up from 368,924,260.618 TH/s on September 1st.
The higher this hashrate, the more difficult it is to produce BTC and the more secure the network is. With the upcoming Bitcoin halving, more miners are preparing for this event by adding more miners to the network, a move that can significantly increase the hash rate and indirectly contribute to the asset's scarcity.
Exchange Netflows
In the crypto world, exchanges are the main channel through which many can accept and issue digital currencies like Bitcoin. Exchange netflow shows the difference between coins entering the exchange and those leaving the exchange. A positive net inflow shows that more money is entering exchanges than leaving them and vice versa.
According to data from IntoTheBlock, the current exchange net flow is negative $62.57 million. This means more money is leaving exchanges into self-storage as it reduces underlying selling pressure and strengthens price sentiment.
About the author
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for cryptocurrencies was born when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. Due to his extensive experience in various aspects of Web3, Godfrey's articles have been published on Blockchain.news, Cryptonews and Coingape, among others.
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