Cryptocurrency Market Update: Is Bitcoin fundamentally stronger in 2020 than in 2016?
|- Data by GlassNode indicates that Bitcoin's hash rate, number of transactions and BTC addresses have significantly grown since 2016.
- Bitcoin hash rate is the most improved parameter, suggesting that miners’ effort to sustain the network is at the peak.
After Bitcoin rallied to $10,120 (previous week high), sellers took control and forced a reversal back into the $9,000’s range. Support was initially formed above $9,700 with $10,000 limiting upward gains until Sunday when the largest cryptocurrency nosedived to $8,100.
The rest of the cryptocurrencies followed in Bitcoin’s footsteps, dumping in double-digit figures. Ethereum, for instance, fell from levels above $200 only to find support at $180. Ripple fell in tandem with Bitcoin to fresh weekly lows at $0.1750.
Also read: How Coronavirus pandemic is poking holes in anticipated post-halving Bitcoin rally?
Bitcoin fundamentals: 2020 Vs 2016
Bitcoin is drawing closer to its third halving likely to take place on Tuesday. Four years have passed since Bitcoin’s second halving in 2016. Data released by GlassNode suggests that a lot has changed fundamentally over the last four years. First, the number of Bitcoin addresses has grown by 234% and is at an all-time high (in the excess of 30 million). Moreover, Bitcoin addresses containing 0.01 BTC continue to surge.
In addition to that, addresses with 1 BTC and 0.1 BTC are more than those in 2016 by 64% and 142% respectively. GlassNode says that these addresses keep soaring to new all-time highs since January 2020. However, entities with over 1,000 BTC have thinned by more than 7% compared to those in 2016. At the same time, addresses holding 1,000 BTC or more have grown by 16%.
Bitcoin hash rate and transaction volume
Bitcoin network has experienced significant growth in the number of daily transactions over the last four years. Precisely, the current number of transactions surpasses that in 2016 by 44% while the volume is higher by 682%. GlassNode also found out that on-chain volume has maintained a constant high since the parabolic rally in 2017.
The most improved parameter is the hashrate. In 2016 the hashrate averaged at 1,571,500 TH/sec while at the moment it is hitting levels of 109,034,592 TH/s. In other words, Bitcoin’s hash rate has posted a 6,837% increase in the last years. This suggests that Bitcoin miners have increased activity and computational power.
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