Glassnode's Insightful 2024 Outlook: A Comprehensive Analysis
Glassnode, a leading blockchain data provider, offers a thorough 2024 outlook that delves into critical indicators and trends shaping the crypto landscape.
In 2023, the digital asset landscape experienced significant growth and evolution, reflecting a remarkable year for cryptocurrencies like Bitcoin and Ethereum. The year showcased the resilience and potential of these assets, offering insights into their market dynamics and investor behavior.
Bitcoin surged by over 172%, demonstrating robust growth and resilience, with shallow corrections throughout the year. Ethereum, while initially slower, exhibited balanced performance, benefitting from reduced supply issuance post-Merge and sustained demand.
Key highlights included the market's recovery from the 2022 bear market, marked by capital inflows into BTC and ETH but at a slower rate than previous cycles. The breakthrough above the $30k resistance in October triggered accelerated market momentum and increased Bitcoin transaction volumes, signaling heightened investor activity.
The emergence of new transaction types like Ordinals and Inscriptions significantly impacted Bitcoin's transaction counts and miner revenues, introducing novel ways to embed data within transactions. These innovations, particularly text-based inscriptions, drove miner fee revenues higher.
Ethereum's ecosystem saw steady growth, with an expansion in Total Value Locked in Layer-2 chains and a significant increase in staked ETH volume after the successful Shanghai update. Despite relatively sluggish on-chain activity, Ethereum's fundamental growth remained steady.
The Bitcoin supply landscape saw a majority held by Long-Term Holders, with a super-majority of coins held in profit, showcasing the asset's recovery from underwater positions earlier in the year. Additionally, maturing derivatives markets, stablecoin dynamics, and shifting dominance among stablecoins played significant roles in defining market structures throughout 2023.
The year's end marked a positive outlook, anticipating further developments such as a US-based ETF and Bitcoin halving in April 2024. Glassnode expressed gratitude to readers and users, reflecting on the year's insights and progress in the digital asset space.
This whirlwind tour of 2023 on-chain activities sets the stage for an exciting year ahead, emphasizing the growing maturity and potential of cryptocurrencies in the financial landscape.
Please note that this summary condenses extensive data and insights from Glassnode's Yearly On-chain Review, capturing key highlights across Bitcoin, Ethereum, derivatives markets, stablecoins, and more. Here's a summarized breakdown of their analysis:
1. Bitcoin's Market Surge: Bitcoin's market cap witnessed a staggering peak increase of +172%, underscoring robust growth in the digital asset ecosystem.
2. Bitcoin Dominance and Ethereum's Ratio: Despite Ethereum's Shanghai update and L2 ecosystem growth, the ETH/BTC Ratio declined, indicating a rising Bitcoin dominance post-bear markets.
3. Outperforming Traditional Assets: Digital assets surpassed traditional markets, achieving substantial gains post-October by surpassing key price levels like $30k.
4. Limited Price Pullbacks: 2023 experienced shallower price pullbacks than usual, with Bitcoin facing a maximum downturn of -20%, signaling robust buy-side support.
5. Ethereum's Resilience: Ethereum encountered shallower corrections than Bitcoin, showcasing a balance between reduced supply issuance from the Merge and sustained demand.
6. Recovery from the 2022 Bear Market: Despite a -75% drawdown at the beginning of 2023, major digital assets showcased significant recovery over the year.
7. On-Chain Capital Flows: Realized Cap for BTC and ETH exhibited slower capital inflows compared to previous cycles, indicating a gradual market recovery.
8. Breaking $30k Resistance: Bitcoin's robust market performance surpassed various technical and on-chain pricing models by overcoming the $30k resistance.
9. Market Momentum Since October: Capital flows and market momentum accelerated post-October, signaling a transition to an 'enthusiastic uptrend' in the market.
10. Increasing Bitcoin Transactions: Bitcoin's transaction volumes doubled since October, reflecting heightened market activity.
11. Exchange Inflows and Outflows: Rising BTC and ETH volumes suggested an expanding spot trading interest, with Bitcoin leading in investor confidence.
12. Impact of Ordinals and Inscriptions: New transaction types significantly impacted Bitcoin transaction counts and miner revenues.
13. Ethereum's On-Chain Activity: Ethereum's on-chain metrics, including active addresses and transaction counts, experienced substantial growth post-October.
14. Growth in Ethereum's Ecosystem: Ethereum observed growth in Total Value Locked in L2 chains and a 119% increase in staked ETH volume.
15. Bitcoin Investor Behavior: A considerable portion of Bitcoin remained dormant, hinting at tight supply held by Long-Term Holders.
16. Supply 'In-Profit' Dominance: Over 90% of Bitcoin's circulating supply now stands 'in-profit,' showcasing a swift market recovery.
17. Maturing Derivatives Markets: Futures and options markets exhibited growth, indicating increased institutional interest in Bitcoin.
18. Stablecoin Supplies and Market Shifts: October marked a turnaround in stablecoin supplies, signaling the return of investor interest.
19. Relative Dominance of Stablecoins: Tether regained dominance in the stablecoin market share.
20. Capital Flows and Market Dynamics: Positive capital inflows into major digital assets since October aligned with market trends and institutional interest.
In conclusion, Glassnode's comprehensive analysis provides a deep insight into the evolving dynamics of the crypto market, capturing pivotal shifts, emerging trends, and indicators of institutional interest.
Acknowledgments: Special thanks to the following contributors whose insights and guidance have been instrumental in navigating the market:
@0xMughal,@arndxt_xo,@0xTindorr,@rektdiomedes,@defitrader_,@Dynamo_Patrick,@VirtualKenji,@crypto_linn,@AkadoSang,@AngeloDodaro,@CryptoShiro_,@TheDeFISaint,@TheDeFinvestor,@0xnocta,@AmirOrmu,@hrojantorse
Their invaluable contributions continue to enrich the crypto community, fostering informed discussions and insightful analyses.
This article draws its data from: https://insights.glassnode.com/the-week-onchain-week-51-2023/#:~:text=Out%20of%20a%20total%20circulating,low%20of%202.317M%20BTC.
Via https://twitter.com/Prithvir12/status/1738092074086650173
Disclaimer: This analysis isn't financial advice (NFA) and it is recommended to conduct thorough due diligence (DYOR) before making any investment decisions. Additionally, team affiliations and potential holdings within the mentioned tokens should be considered for transparency and potential biases.
Following @Prithvir12’s account for more updates and analyses provides a way to stay informed about emerging trends and developments in the crypto space.
Remember, investing in crypto assets carries risks, and it's crucial to make informed decisions based on personal research and risk tolerance levels.
Glassnode's Insightful 2024 Outlook: A Comprehensive Analysis
Glassnode, a leading blockchain data provider, offers a thorough 2024 outlook that delves into critical indicators and trends shaping the crypto landscape.
In 2023, the digital asset landscape experienced significant growth and evolution, reflecting a remarkable year for cryptocurrencies like Bitcoin and Ethereum. The year showcased the resilience and potential of these assets, offering insights into their market dynamics and investor behavior.
Bitcoin surged by over 172%, demonstrating robust growth and resilience, with shallow corrections throughout the year. Ethereum, while initially slower, exhibited balanced performance, benefitting from reduced supply issuance post-Merge and sustained demand.
Key highlights included the market's recovery from the 2022 bear market, marked by capital inflows into BTC and ETH but at a slower rate than previous cycles. The breakthrough above the $30k resistance in October triggered accelerated market momentum and increased Bitcoin transaction volumes, signaling heightened investor activity.
The emergence of new transaction types like Ordinals and Inscriptions significantly impacted Bitcoin's transaction counts and miner revenues, introducing novel ways to embed data within transactions. These innovations, particularly text-based inscriptions, drove miner fee revenues higher.
Ethereum's ecosystem saw steady growth, with an expansion in Total Value Locked in Layer-2 chains and a significant increase in staked ETH volume after the successful Shanghai update. Despite relatively sluggish on-chain activity, Ethereum's fundamental growth remained steady.
The Bitcoin supply landscape saw a majority held by Long-Term Holders, with a super-majority of coins held in profit, showcasing the asset's recovery from underwater positions earlier in the year. Additionally, maturing derivatives markets, stablecoin dynamics, and shifting dominance among stablecoins played significant roles in defining market structures throughout 2023.
The year's end marked a positive outlook, anticipating further developments such as a US-based ETF and Bitcoin halving in April 2024. Glassnode expressed gratitude to readers and users, reflecting on the year's insights and progress in the digital asset space.
This whirlwind tour of 2023 on-chain activities sets the stage for an exciting year ahead, emphasizing the growing maturity and potential of cryptocurrencies in the financial landscape.
Please note that this summary condenses extensive data and insights from Glassnode's Yearly On-chain Review, capturing key highlights across Bitcoin, Ethereum, derivatives markets, stablecoins, and more. Here's a summarized breakdown of their analysis:
1. Bitcoin's Market Surge: Bitcoin's market cap witnessed a staggering peak increase of +172%, underscoring robust growth in the digital asset ecosystem.
2. Bitcoin Dominance and Ethereum's Ratio: Despite Ethereum's Shanghai update and L2 ecosystem growth, the ETH/BTC Ratio declined, indicating a rising Bitcoin dominance post-bear markets.
3. Outperforming Traditional Assets: Digital assets surpassed traditional markets, achieving substantial gains post-October by surpassing key price levels like $30k.
4. Limited Price Pullbacks: 2023 experienced shallower price pullbacks than usual, with Bitcoin facing a maximum downturn of -20%, signaling robust buy-side support.
5. Ethereum's Resilience: Ethereum encountered shallower corrections than Bitcoin, showcasing a balance between reduced supply issuance from the Merge and sustained demand.
6. Recovery from the 2022 Bear Market: Despite a -75% drawdown at the beginning of 2023, major digital assets showcased significant recovery over the year.
7. On-Chain Capital Flows: Realized Cap for BTC and ETH exhibited slower capital inflows compared to previous cycles, indicating a gradual market recovery.
8. Breaking $30k Resistance: Bitcoin's robust market performance surpassed various technical and on-chain pricing models by overcoming the $30k resistance.
9. Market Momentum Since October: Capital flows and market momentum accelerated post-October, signaling a transition to an 'enthusiastic uptrend' in the market.
10. Increasing Bitcoin Transactions: Bitcoin's transaction volumes doubled since October, reflecting heightened market activity.
11. Exchange Inflows and Outflows: Rising BTC and ETH volumes suggested an expanding spot trading interest, with Bitcoin leading in investor confidence.
12. Impact of Ordinals and Inscriptions: New transaction types significantly impacted Bitcoin transaction counts and miner revenues.
13. Ethereum's On-Chain Activity: Ethereum's on-chain metrics, including active addresses and transaction counts, experienced substantial growth post-October.
14. Growth in Ethereum's Ecosystem: Ethereum observed growth in Total Value Locked in L2 chains and a 119% increase in staked ETH volume.
15. Bitcoin Investor Behavior: A considerable portion of Bitcoin remained dormant, hinting at tight supply held by Long-Term Holders.
16. Supply 'In-Profit' Dominance: Over 90% of Bitcoin's circulating supply now stands 'in-profit,' showcasing a swift market recovery.
17. Maturing Derivatives Markets: Futures and options markets exhibited growth, indicating increased institutional interest in Bitcoin.
18. Stablecoin Supplies and Market Shifts: October marked a turnaround in stablecoin supplies, signaling the return of investor interest.
19. Relative Dominance of Stablecoins: Tether regained dominance in the stablecoin market share.
20. Capital Flows and Market Dynamics: Positive capital inflows into major digital assets since October aligned with market trends and institutional interest.
In conclusion, Glassnode's comprehensive analysis provides a deep insight into the evolving dynamics of the crypto market, capturing pivotal shifts, emerging trends, and indicators of institutional interest.
Acknowledgments: Special thanks to the following contributors whose insights and guidance have been instrumental in navigating the market:
@0xMughal,@arndxt_xo,@0xTindorr,@rektdiomedes,@defitrader_,@Dynamo_Patrick,@VirtualKenji,@crypto_linn,@AkadoSang,@AngeloDodaro,@CryptoShiro_,@TheDeFISaint,@TheDeFinvestor,@0xnocta,@AmirOrmu,@hrojantorse
Their invaluable contributions continue to enrich the crypto community, fostering informed discussions and insightful analyses.
This article draws its data from: https://insights.glassnode.com/the-week-onchain-week-51-2023/#:~:text=Out%20of%20a%20total%20circulating,low%20of%202.317M%20BTC.
Via https://twitter.com/Prithvir12/status/1738092074086650173
Disclaimer: This analysis isn't financial advice (NFA) and it is recommended to conduct thorough due diligence (DYOR) before making any investment decisions. Additionally, team affiliations and potential holdings within the mentioned tokens should be considered for transparency and potential biases.
Following @Prithvir12’s account for more updates and analyses provides a way to stay informed about emerging trends and developments in the crypto space.
Remember, investing in crypto assets carries risks, and it's crucial to make informed decisions based on personal research and risk tolerance levels.
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Glassnode's Insightful 2024 Outlook: A Comprehensive Analysis
Dec 29, 2023
Glassnode's Insightful 2024 Outlook: A Comprehensive Analysis
Dec 29, 2023