Bitcoin demand outstrips miner issuance to unprecedented degree, data shows
Data shows that for the first time in history, investors’ demand for Bitcoin has now exceeded the amount issued by miners, and the margin is quite large.
Since these investors are not known to sell, the new supply they accumulate could become equally illiquid in the future. Therefore, buying from these holders can be a particularly bullish signal, as it suggests that the available trading supply of the asset may be declining.
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In the chart, demand from these holders is measured by the growth of their combined balances. It is clear that accumulation addresses increased their buybacks significantly in 2020 and maintained these growth levels in the following years.
Miners "produce" BTC when they solve blocks and receive block rewards. These rewards are paid out in the form of Bitcoins and are the only way to increase the circulating supply of the cryptocurrency.
As the graph shows, the issuance remains more or less stable for several years in a row. Between these streaks, its value suddenly plummets. The reason for this is, naturally, the halving.
Halvings are periodic events on the Bitcoin network where the block reward is permanently cut in half. These events occur approximately every four years; the next one is scheduled for about ten days.
While the demand for accumulation addresses has been quite high since the start of 2020, it has never completely exceeded miners’ issuance.
However, the growth of accumulation addresses has exploded recently, with the metric not only maintaining above network issuance but also far exceeding its actual value.
This means that these holders are buying far more than miners are producing on the network. Data analysis points out that this is naturally only a portion of the total network demand, as there are other buyer entities, so this shows how strong the demand for BTC has been recently.
The main driving force behind this demand is the emergence of Bitcoin spot exchange-traded funds (ETFs), which provide an alternative way to gain exposure to cryptocurrencies in a manner that traditional investors prefer.
Bitcoin Price
As of this writing, Bitcoin is trading around $68,700, having gained more than 4% over the past week.
4 altcoins that are about to break out
1. THERE IS
Cardano (ADA) stands out for its innovative features and vision for a decentralized future. One of Cardano’s main strengths lies in its peer-reviewed development approach, which ensures the robustness and security of its protocol. Cardano prioritizes scalability and is designed to accommodate a wide range of applications while maintaining efficiency.
Furthermore, its focus on interoperability facilitates seamless integration with other blockchain networks, thus enhancing its utility. Today’s live Cardano price reflects its stability and growing adoption, attracting investors and developers.
Cardano’s 24-hour trading volume is $430,034,733, demonstrating strong liquidity and market interest. Its commitment to research-driven development and community governance further solidifies its position as the leading blockchain platform in the cryptocurrency space.
2. FTM
antom is a distributed ledger technology stack. It is a DAG-based distributed ledger at its core, and also includes new methods of scalability, high-performance virtual machines, and secure and reliable smart contract execution capabilities.
Despite the bearish broader market, Fantom stands out with its impressive surge, recovering above the $1 mark. The blockchain platform, known for its speed, scalability, and DeFi services, aims to surpass its 2024 highs. With the potential for 3-4x gains, Fantom’s strong ecosystem and continued development make it a top choice for investors seeking strong returns in this bull run.
3. SHIB
As you may have heard, SHIB coin once skyrocketed by an astonishing 1.6 million times, and this news even made headlines.
SHIB coin was born in August 2020. From its extremely low price at the beginning, it has now achieved a growth of more than 10,000 times. Its growth is staggering, and it also makes people full of expectations for the future of the digital currency market.
As a decentralized experimental currency, SHIB has issued 100 trillion coins. Its founding team generously put 50 trillion coins into Vitalik’s wallet, which undoubtedly adds more possibilities for the future development of SHIB.
4. RNDR
Render (RNDR) is one of the most successful altcoins in recent months, and its price trend has begun to accelerate with the rise of artificial intelligence. It has created an open market for GPU computing and rendering (RNDR), connecting demand and supply using its native token $RNDR as a medium of exchange.
The proliferation of AI tools and services has led to a growing demand for GPU computing, which means there is no shortage of buyers on the platform. The biggest advantage of decentralized solutions is the creation of a global marketplace, which is exactly what Render (RNDR) does — it builds a borderless GPU rendering network.
Render (RNDR) started the year trading at around $3 and peaked at over $13 a few weeks ago. All this wealth creation has Render (RNDR) whales looking for a new project where they can put their profits to work.
