Bitcoin (BTC) has been the most interesting asset over the last decade and on-chain analytics can prove such a statement. Since its inception, and until the first quarter of 2020, Bitcoin has increased over 1,000,000% in value, climbing from $0.05 to around $10,000. However, it is also true that Bitcoin, or any other cryptocurrency for that matter, has ever faced a great recession or depression during its brief history. At least, it has not faced one in its entirety, since Bitcoin was born in 2009 in the middle of the financial crisis.
Today, we aim to explore some key metrics that translate into adoption. Our goal is not to focus on technical analysis per se, but to look into on-chain metrics and see how they can impact the current and future price of BTC.
What metrics are we looking into?
- Addresses — as in the amount each address holds, the length of time the amount has been held, and individual behavior.
- Transactions, as in the number, amounts transferred and total volume.
- Unspent transaction output (UTXO), as in the percentage of holders in profit, the total value created and the total value spent.
- Blocks — as in block height and block weight, or the actual size in bytes of both the total blockchain and a single block.
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