Weekly Onchain Insights: Milestones Week
The IntoTheBlock newsletter highlights weekly interesting data points about the crypto markets.
Every week the IntoTheBlock team publishes a newsletter that summarizes key data insights about the crypto market. Below is a quick summary.
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Bitcoin Price Analysis: $9,076.94 (6am EST 07/03/2020)
The In/Out of the Money Around Price (IOMAP) indicator detects that over 2.1 million addresses previously purchased 1.38 million BTC at the range between $9,095 and $9,365, a critical resistance level as several of these addresses will attempt to break-even on their positions.
Looking at the levels of support, over 1 million addresses had previously purchased a total of 705k BTC between $8,805 and $9,076. This is expected to act as support as holders in this range will attempt to remain profitable on their positions and push prices above this level.
By comparing these levels to those provided by technical analysis, we can verify buyers are expected to create support near the $8,900 range, while sellers will provide resistance around $9,200. The strength of these price ranges, as demonstrated by the magnitude in volume of these clusters, points to the possibility of Bitcoin trading range-bound and potentially moving strongly in either direction if prices breakout.
This week Major Milestones
1) 20 million “HODLERS” in Bitcoin
What does Ownership by Time Held mean?
Hodlers are passive investors that have held the asset for more than 1 year
As can be seen in the image above, the number of addresses ‘hodling’ Bitcoin has been on a consistent uptrend throughout the last twelve months.
This week, the number reached 20 million, or roughly two-thirds of all addresses with a balance. Similarly, approximately 60% of the circulating supply of Bitcoin is held by these addresses with an average time held of 4.7 years.
The growth in the number of addresses hodling is even more remarkable when you consider that it has increased every single month out of the last twelve, including March, when prices dropped by more than 50% top to bottom.
2) Ethereum Daily Transactions Reach Multi-Year High
What does Transaction mean?
ITB measures the number and volume of on-chain transactions in a given period.
In terms of price, Ethereum has had a very positive year with the value of ETH increasing 88% year-to-date. Perhaps even more impressive, however, is the growth in some key on-chain indicators.
As yield farming and DeFi activity has boomed the last few weeks, Ethereum has benefitted from an increase in ETH use, which is needed to pay gas costs required by these projects. Recently, the number of Ethereum transactions reached a level not seen since January 2018, it surpassed 1 million transactions, achieving a high of 1.09 million transactions on June 23.
3) Cardano reaches its highest price in over a year
It’s been a great year for Cardano holders. ADA has now raced up to fresh yearly highs, reaching 0.0928 on July 2nd, a price that we haven’t seen since June of 2019.
The impressive price rally is likely due to optimism ahead of the much-anticipated release of the Shelly upgrade. On June 30, Cardano releases the “Shelley Code”, as previously announced on their roadmap. The process should be fully completed in about 3 weeks after which the network will undergo a hardfork.
4) Kyber Network surges ahead of ETH staking rewards launch
DeFi’s growth in 2020 can be summarized in one word: incentives. As yield farming and staking have boosted rewards for DeFi token-holders, they have also supercharged the demand (and prices) of protocols’ native tokens.
Kyber’s KNC token is having an amazing year-to-date return of over 720%, with the price going as high as $1.55, a level not seen since July of 2018.
The main reason for this price rally is the upcoming Katalyst upgrade, scheduled for July 7, will introduce the KyberDAO and promises to bring a host of technical improvements to the decentralized liquidity protocol.
This will enable KNC holders to stake their tokens for a reward and vote on governance proposals, while simultaneously receiving ETH.
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