📈 The Current State of Crypto in 7 Graphs
PLUS: ⚡️ The fastest blockchains in the top 100
Welcome to another free edition of Altcoin Investing Picks.
I hope you enjoyed our last issue ”The ETH ETFs are here!”
In today's newsletter:
📈 The Current State of Crypto in 7 Graphs
⚡️ The fastest blockchains
💸 Alpha Signal: BTC MVRV ratio
The Current State of Crypto in 7 Graphs
Glassnode & Coinbase dropped The Q3 Guide To Crypto Markets a quarterly series to provide key metrics and trends that will define the crypto landscape.
Here are 7 graphs that caught our attention from the report:
1. Are digital asset being normalized?
The perception is that digital assets volatility Is too high for many investors, but the reality is that it has been comparable to some large, widely-held and well-known technology stocks like AMZN, NVDA and TSLA.
👉 You might increase the % of digital assets in your total portfolio
2. Stablecoin MC is $162.5B, up $2B in two weeks and surpassing pre-3AC levels.
As capital continues to flow into the system, it’s difficult to adopt a bearish outlook as long as this trend persists.
👉 Fundamentals are strong
3. BTC is up ~400% since hitting its cycle low in November 2022
The current cycle most closely resembles the cycle from 2018-2022, which saw BTC hit a high that was up 2,000% from the cycle low.
👉 We’re still early in the cycle
4. Since the fourth Halving (black line) on April 19, 2024 the price of bitcoin has fallen 2%.
Immediately following the Halvings, the price tends to trade sideways — as it is presently. However, within 12 months following the first three Halvings, the price tends to appreciate meaningfully (10x, 2x, 6x).
👉 Stay invested (or increase your position)
5. Onchain Activity is Rapidly Increasing
Average daily active addresses across Ethereum and the leading L2s are up 127% this year, spurred by large pickups in activity on leading L2s.
👉 DeFi season is coming back
6. BTC Available Supply has fallen to around 5.23M BTC.
The amount of available bitcoin supply peaked in mid 2022 at 5.65M BTC and has since fallen to around 5.23M BTC.
👉 BTC supply is becoming even scarcer
7. ETH Holders are looking to generate yield
The amount of staked ETH rose 5% in the second quarter as more holders looked to generate yield from their assets.
👉 ETH is a cash-flowing asset, not a speculation
⚡️ The fastest blockchains
In the context of blockchains, transactions per second (TPS) refers to the number of transactions that a network is capable of processing each second.
There are 3 most common types of TPS:
Real-time TPS: based on real-time blockchain data.
Max Recorded TPS: the peak TPS blockchain has ever reached.
Max Theoretical TPS: how many TPS the blockchain is theoretically capable of handling.
Solana, Ton, Kaspa, Aptos, Sui, Fantom, Sei, MultiversX and EOS are the fastest blockchains in the top 100.
Get undervalued blockchains in your inbox, every month 📈
Every month we share the best blockchains to buy based on our value investing framework which aggregates fundamental metrics & value capture metrics discounted by the market multiples.
Check out our latest ratings →
💸 Alpha Signal: BTC MVRV ratio
Bitcoin Market Value is currently 2.1x its "Realized Value”, a proxy for the cost basis of all Bitcoins in circulation. In the last cycle, the MVRV ratio peaked at 7.6. In the prior cycles, it peaked out much higher.
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Cheers