Bitcoin activity soared to a 7-month high this week; miners dug a total of 6,131 Bitcoins, and only sold 5,313 Bitcoins. The overall willingness to sell is weak; the weekly burn volume of WBTC reached about 6,031.
Written by: Ad
Highlights of this issue
Last week, the overall computing power of Bitcoin was at a lower level than before; the average block generation time was in the 617s interval.
From the perspective of market sentiment, Bitcoin Liveliness has soared to a 7-month high; Bitcoin Miners Rolling Inventory Index (MRI) shows that miners maintain a neutral attitude towards holding and selling Bitcoin, and their overall willingness to sell Weaker.
In addition, the balance of the Ethereum 2.0 deposit contract address has exceeded 1.4 million ETH, and the number of wallet addresses holding at least 1 Ethereum hit a record high on December 8th; WBTC continued to break the weekly burn record, with more than 6031 burned this week. .
The difficulty of the entire network has risen to a high level, and the average block time is about 617s
As the mining difficulty of the Bitcoin network was raised by 8.87% to a high of 19.16T on November 29, the overall computing power of the entire network has been at a low level recently. In the past week, Bitcoin’s entire network computing power remained at 133EH/s. In addition, affected by currency prices and computing power, the average block generation time of the Bitcoin network in the past week has been around 617s, with little overall fluctuations.
Bitcoin traders started to be active, and miners held a wait-and-see attitude
Liveliness is an indicator created by the well-known Bitcoin developer Tamas Blummer in 2018 to reflect the on-chain activity of tokenists (long-term investors). The increase in this indicator indicates that the activity of the tokenist chain has increased.
Glassnode data shows that Bitcoin’s activity has soared to a 7-month high. With the price of Bitcoin hovering at $20,000, this value shows that long-term investors are increasingly willing to adjust their Bitcoin positions.
The Miner’s Rolling Inventory (MRI) is a concept proposed by Charlie Morris on ByteTree in 2020, which aims to measure changes in the level of Bitcoin inventory held by miners. Charlie Morris believes that an MRI higher than 1 means that miners are more willing to sell Bitcoin, and an MRI lower than 1 means that miners are more inclined to hoard Bitcoin.
As shown in the figure below, the darker the color of the MRI indicator, the stronger the willingness of miners to sell and hoard. On November 24, the selling of the MRI indicator (blue) had a clear upper hand, and the willingness of miners to sell was stronger. At that time, the Bitcoin price The volatility was also relatively large, falling from US$19,000 to US$17,000 in two days.
This week, the Bitcoin MRI index holding (purple) is lighter than the selling (blue) distribution, indicating that miners are more inclined to stay on the sidelines this week.
Another indicator can also tell the recent attitude of miners. ByteTree data shows that in the past week, miners have mined a total of 6,131 bitcoins and only sold 5,313 bitcoins, an overall increase of 818 in stock. The data further shows that the willingness of miners to sell is generally weak.
ETH is still hot, and the amount of WBTC burned breaks the record
Benefiting from the development of DeFi, ETH’s performance this year is satisfactory. Thanks to this, ETH2.0 successfully reached the minimum start-up threshold for pledge. On November 24, more than 300,000 ETH flowed into the 2.0 deposit contract address, and the pledge threshold progressed from 57% to 100%, which met the minimum requirements for starting the genesis block. On December 1, the main network of the Ethereum 2.0 beacon chain (Beacon Chain) was officially launched.
Currently, ETH1 and ETH2 are tokens of two different chains. After the launch of the beacon chain, there will be a transition period between the two Ethereum chains. Users deposit Ethereum tokens into a deposit contract and can obtain token pledge incentives through the ETH 2.0 network. At the same time, Huobi, OKEx, and Binance have all launched ETH 2.0 pledge mining, which has also driven the enthusiasm of the market to a certain extent. As of December 12, the balance of the Ethereum 2.0 deposit contract address has exceeded 1.4 million ETH, reaching approximately 1,421,921.
In addition, Glassnode data shows that the number of wallet addresses holding more than 1 ETH has approached 1.18 million, reaching 1,179,671, which continued to break new highs this week. But it is worth noting that a single user can create multiple wallet addresses, which means that the value of nearly 1.18 million will not necessarily be mapped to the number of users or entities in a 1:1 ratio.
On the other hand, the Bitcoin anchor WBTC has shown signs of decline recently. Since the end of November, the weekly burn volume of WBTC has continued to break records. A total of about 599 WBTC have been minted this week, but the burn volume has reached approximately 6031.
Judging from the destruction record, the institution is the main reason for this WBTC destruction. On December 7, Alameda Research, a quantitative trading company, destroyed approximately 1,290 WBTC. Previously, its trader Lan Gu analyzed that the continuous rise in the price of Bitcoin was a major reason for the destruction of WBTC.
At the same time, BitGo product manager Kiarash Mosayeri also said in an interview with Coindesk that another reason for the intensification of the destruction phenomenon may be that the decentralized exchange Uniswap ended liquidity mining, reducing users’ motivation to keep funds on the platform .
Lianwen Note: On-chain data weekly report is a series of on-chain data analysis columns launched by Lianwen, which brings users and data enthusiasts the data summary and analysis of the blockchain world, and shares the latest data trends with you every Monday And industry development trends.
