{"id":156485,"date":"2023-09-15T14:58:39","date_gmt":"2023-09-15T09:28:39","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=156485"},"modified":"2023-09-15T14:58:39","modified_gmt":"2023-09-15T09:28:39","slug":"11-bitcoin-blockchain-metrics-tradfi-organizations-should-watch-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/11-bitcoin-blockchain-metrics-tradfi-organizations-should-watch-crypto-news\/","title":{"rendered":"11 Bitcoin blockchain metrics TradFi organizations should watch – Crypto News"},"content":{"rendered":"
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Many who aren\u2019t crypto industry insiders may view \u201cBitcoin\u201d and \u201ccrypto\u201d as basically synonymous. While members of the traditional finance industry know that there\u2019s much more to crypto than Bitcoin, they also know that Bitcoin\u2019s performance and health serve as a bellwether for the acceptance and growth of the overall crypto industry.\u00a0<\/p>\n

Monitoring select blockchain metrics can help financial institutions and investors gauge market sentiment, predict changes in values and identify investment risks and opportunities not only in terms of Bitcoin, but also the larger crypto industry. Below, 11 members of Cointelegraph Innovation Circle<\/a> detail Bitcoin blockchain metrics TradFi organizations would be wise to watch.<\/p>\n

Realized cap<\/h2>\n

Realized cap is an on-chain metric that shows the total sum of profits and losses from all on-chain sales and purchases. An increasing realized cap would mean new investors are buying and selling Bitcoin (or any other cryptocurrency) for higher prices. This also means that the net sum of trades is in profits, and therefore, people are now bullish on Bitcoin. \u2013 Abhishek Singh<\/a>, Acknoledger<\/a><\/p>\n

Halving<\/h2>\n

Bitcoin halving should be considered by financial institutions because it can influence Bitcoin\u2019s price through altered supply dynamics, potentially impacting miner profitability and network security. Halving can indicate broader mainstream adoption trends, present speculative opportunities and serve as a focal point for educational and marketing initiatives within the finance sector. \u2013 Irina Litchfield<\/a>, Lumeria<\/a><\/p>\n

Hash rate<\/h2>\n

As financial institutions explore cryptocurrencies, they should focus on a key Bitcoin blockchain measure: the hash rate. The hash rate measures the network\u2019s strength and security by gauging its computational power. Keeping an eye on Bitcoin\u2019s hash rate helps financial institutions assess the stability of the network and any investment risks linked to cryptocurrencies. \u2013 Vinita Rathi<\/a>, Systango<\/a><\/p>\n

Growth in the number of wallets with large holdings<\/h2>\n

In addition to the often-discussed \u201chalving\u201d of Bitcoin, financial institutions should also pay heed to the growth in the number of wallets holding large amounts of BTC. A wallet with a small amount of BTC could probably be assumed to be a retail investor, while wallets holding large amounts could potentially be \u201cwhales\u201d or institutional holders. \u2013 Zain Jaffer<\/a>, Zain Ventures<\/a><\/p>\n

Number of solutions leveraging Bitcoin security<\/h2>\n

I think it\u2019s useful to look at how many solutions are leveraging Bitcoin security through timestamping \u2014 or even better, merged mining \u2014 because all of that value will be leveraged and, thus, fed back into Bitcoin. For example Syscoin, Namecoin and Dogecoin merge mine and add value to ancillary chains. Many overlook the external value being built by leveraging Bitcoin security. \u2013 Jagdeep Sidhu<\/a>, Syscoin Foundation<\/a><\/p>\n

DeFi velocity<\/h2>\n

DeFi velocity (DFY) is a valuable metric for Web3 investors. In addition to total value locked, DFY also factors in volume to shed light on the user engagement and capital efficiency of a specific crypto market. Overall, this metric can help institutions differentiate between stagnant capital and healthy economic activity. \u2013 Wolfgang R\u00fcckerl<\/a>, ENT Technologies AG<\/a><\/p>\n

Transaction volume<\/h2>\n

Bitcoin transaction volume is a key blockchain metric for financial institutions monitoring crypto adoption and market activity. It refers to the specific number of transactions that occur on the Bitcoin blockchain within a specific timeframe. Financial institutions may find this metric essential as they explore crypto, as it shows trends, user engagement, risk and more. \u2013 Anthony Georgiades<\/a>, Pastel Network<\/a><\/p>\n

Bitcoin distribution<\/h2>\n

Monitoring the distribution of Bitcoin helps show macro trends in market sentiment. For example, analyzing the circulating supply of Bitcoin held by BTC \u201cwhales\u201d (those who own more than 1,000 BTC) versus that held by BTC \u201cshrimp\u201d (those who own fewer than 1 BTC) helps financial institutions gauge risk exposure and the behavior of different investor groups to predict price stability and potential volatility. \u2013 Sheraz Ahmed<\/a>, STORM Partners<\/a><\/p>\n

Miner revenue from transaction fees<\/h2>\n

Ever-increasing energy costs and future halving events are presenting compounding challenges for Bitcoin miners. However, the rise of Bitcoin Ordinals and BRC-20 tokens is positioning miner revenue from transaction fees to become a new key vector to consider when calculating network health. As Bitcoin diversifies to accommodate a service economy, there\u2019s no telling what novel applications could arise. \u2013 Oleksandr Lutskevych<\/a>, CEX.IO<\/a><\/p>\n

Number of unique wallet addresses<\/h2>\n

There is a direct correlation between market sentiment and the number of unique wallet addresses, and financial institutions can use this metric to infer Bitcoin\u2019s strength. As Bitcoin becomes stronger as a store of value and the Lightning Network slowly and steadily begins handling micro payments, the growth of unique wallet addresses will become a strong predictor of market sentiment. \u2013 Tiago Ser\u00f4dio<\/a>, Partisia Blockchain<\/a><\/p>\n

Bitcoin days destroyed<\/h2>\n

Financial institutions should measure Bitcoin days destroyed (BDD), which is the number of days since BTC was last moved multiplied by the amount exchanged. It reveals high-volume, low-value economic activities. BDD increases when long-term BTC holders sell \u2014 often before major market changes. \u2013 Arvin Khamseh<\/a>, SOLDOUT NFTs<\/a><\/p>\n

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This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Many who aren\u2019t crypto industry insiders may view \u201cBitcoin\u201d and \u201ccrypto\u201d as basically synonymous. While members of the traditional finance industry know that there\u2019s much more to crypto than Bitcoin, they also know that Bitcoin\u2019s performance and health serve as a bellwether for the acceptance and growth of the overall crypto industry.\u00a0 Monitoring select blockchain […]<\/p>\n","protected":false},"author":2,"featured_media":156486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-156485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/156485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=156485"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/156485\/revisions"}],"predecessor-version":[{"id":156488,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/156485\/revisions\/156488"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/156486"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=156485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=156485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=156485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}