Bitcoin shows potential for further price gains
Analysis of on-chain metrics reveals that the oldest digital currency can strongly contend with more recent blockchains on a block-by-block level, and even when looking at each transaction.
The 50-day simple moving average of the total number of Bitcoin transactions on the network has now reached its highest point in two years or more.
Although there were pauses based on specific days, the moving average helped smooth out inconsistencies in the data.
Bitcoin just completed its first run to $60,000.
Over the past two years, on almost every occasion, Bitcoin has crossed an average of 320,000 transactions on its network, with price advances following it.
Taking a positive first quarter of 2019, Bitcoin advanced from $3,732 on March 4th to $5,300 on April 30th, just after the transaction crossed the next threshold.
There are exceptions, including in February and August 2020; the 320,000 figure preceded Bitcoin’s maximum price increase in both cases.
One other way to evaluate network activity is through the analysis of daily active addresses. Statistics show that, again, using a smoothed moving average, this figure is based on a five-month high.
On-chain metrics, addresses with non-zero balances, and unique entities holding at least one BTC all reflect the large adoption of Bitcoin as a store of value and a means of payment.
The Ethereum Shanghai update
The Ethereum Shanghai update is an important development for Ethereum, aiming to improve the scalability and security of the network. This is the culmination of several Ethereum improvement proposals designed to make the network more bandwidth-efficient and lower transaction fees.
The update includes the integration of EIP-1559, which introduces a new fee structure and reduces the circulating supply of Ethereum. Additionally, Shapella’s update increases the value of Ethereum as it allows users to withdraw their stake in Ether. This makes the platform even more efficient as users can get the value they need from the platform.
These updates are essential to the development of Ethereum as it positions it as a more viable platform. It also reduces reliance on intermediaries and creates a more decentralized system.
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