The State of DeFi Tokens in 2023
In this issue of the State of The Network, we take a look at the latest developments of tokens in the DeFi space, including market dynamics, supply statistics and measures of adoption.
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Ranking Crypto Assets by Auditability
In Medieval times, landed estates’ accounts were read out loud to a person charged by the local ruler to ensure that their steward had not swindled them. As the primary role of this person was to listen (audire in latin), they [...]
Analyzing the Supply Distributions of Projects with On-Chain Governance
It takes a whole network of people to make a public blockchain work. You need miners to validate and secure the ledger. You need developers to maintain and update the protocol’s code. And you need users and investors who use [...]
The Psychology of Bitcoin Bubbles as Measured by Investor Cost Basis
Bubbles and subsequent crashes in financial assets occur with regular frequency in economic history, largely due to deeply-rooted cognitive biases in human psychology. In Bitcoin’s ten year history, at least three complete bubble-and-crash cycles have been observed. We examine the [...]
Weekly Network Data Insights
Crypto markets took a significant downturn towards the tail end of last week, with BTC price dropping to six-month lows. As a result, most major assets are down by over 10% week over week. The crash came after the People’s [...]
How Many Bitcoins Are Permanently Lost?
Bitcoin’s whitepaper, which recently turned 11 years old, is so concise that it makes only a passing mention of supply: Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees [...]
The Evolution of Ethereum Tokens
In 2015, Ethereum ushered in a new era for blockchains: the age of the token. Broadly defined, a “token” represents a utility or asset and is typically issued on an existing blockchain. In contrast, a “coin” is a crypto asset [...]
Macroeconomic Indicators for the Crypto-Economy
Just like a nation state’s economy has economic concepts (such as gross domestic product, inflation, and unemployment), a crypto asset can represent a miniature economy that has similar economic concepts. We present our network data using a simple analogy that [...]
The Signal and the Nonce: Hunting for ASICs in Nonce Distributions
The Great ASIC Debate. Since the early days of Bitcoin, the community has argued about whether to fight against increasingly powerful mining hardware. In Bitcoin’s early days, mining was performed by CPUs, which are the standard processing units found in most computers. This [...]
Bitfinex Market Share is Declining
Bitfinex, the controversial Hong Kong based exchange at the heart of ongoing investigations against Tether, has been one of the biggest cryptocurrency exchanges in the world since its launch in 2012. But recently there are signs that its market share may [...]