According to estimates by CryptoQuant CEO Ki Young Ju, the total stored capital of the Bitcoin network has surged by 85% this year, reaching a staggering $1.03 trillion. This significant increase is based on a combination of on-chain and off-chain data. The estimation methods used to calculate this growth provide valuable insights into the capital inflows and storage levels of the Bitcoin network.
Estimation Methods
The estimation methods used by CryptoQuant CEO Ki Young Ju include:
* Off-chain transactions: Calculating the capital flowing into the market through exchanges by multiplying the exchange’s reserves by the weighted average price (VWAP). * On-chain transactions: Tracking capital inflows from over-the-counter (OTC) transactions and on-chain activities of exchanges using Realized Cap.
The Storage of Value Index (SoV Index)
The combination of these data forms the “Storage of Value Index” (SoV Index), which reflects the capital storage level of Bitcoin in the network. This index provides a comprehensive view of the Bitcoin network’s stored capital, offering valuable insights for investors and market analysts.
Note: The content is for informational purposes only and does not constitute investment advice.
Source: Panewslab.com
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