Ethereum Staking Through the Lens of Lido
In this issue of Coin Metrics’ State of the Network, we dive into Lido—the largest player within the staking economy—and understand the state of its liquid staking token (stETH), governance token (LDO) and underlying node-operator composition. With this analysis, we seek [...]
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Creating a Better Supply Measurement: Introducing Free Float Supply
An accurate measure of supply is crucial in determining a cryptoasset’s value. However, the definition and methodologies of calculating supply are not yet widely agreed upon or standardized, which leads to different supply counts across the industry. One definition of [...]
Assessing the Long-Term Fallout from Crypto’s Black Thursday
On March 12th 2020, now called “Black Thursday,” Bitcoin’s price dropped by nearly 50%, one of its largest drops since the Mt. Gox debacle. Source: Coin Metrics Reference Rates In our 43rd issue, we looked at the impact of that [...]
Investigating Bitcoin’s Changing Correlations
Is Bitcoin an Uncorrelated Financial Asset, A Safe Haven Asset, or Both? Investigating Bitcoin’s Changing Correlations By Nate Maddrey and the Coin Metrics Team The narratives about Bitcoin’s value have shifted over the years, and continue to be debated today. At different points, Bitcoin has [...]
The Signal and the Nonce Redux: From S9s to S17s
As Bitcoin enters its next halving, the network is experiencing several simultaneous transitions. In addition to the severe change in mining economics being caused by the reward adjustment, Bitmain’s Antminer S17 is in the process of replacing the longstanding S9 [...]
Understanding Miner Economics From First Principles
The next halvening is approaching, yet debate about its impact on asset prices remains mired in controversy. Two camps have formed. One believes the halvening is already priced in by market participants, citing the efficient market hypothesis. The other camp [...]
The BitMEX Liquidation Spiral
Analyzing How Crypto’s Nascent Market Structure Held Up During the Crash In the previous issue of State of the Network, we presented some preliminary analysis of the recent dramatic crash in cryptoasset prices. We showed that on-chain data seem to [...]
Data Shows Cryptoasset Sell-off Was Driven by Short-term Holders
On March 12th, amidst growing concerns over the COVID-19 pandemic, Bitcoin (BTC) suffered one of its largest one-day price drops in history. The rest of crypto followed, with most major assets down over 30% on the week. Source: Coin Metrics [...]
Using MVRV To Analyze Investor Behavior
Speculators vs Holders: Using MVRV To Analyze Investor Behavior In two previous issues of State of the Network (Primer on Cryptoasset Valuation Part 1 and Part 2) we conducted a comprehensive review of cryptoasset valuation research. In this issue we take a deep [...]
Cryptoasset Valuation Research Primer, Part 2
In a previous State of the Network, we published the first part of our cryptoasset valuation research primer focused on summarizing and synthesizing this emergent field in the literature. Our introduction in the first part describes our approach: We conducted a comprehensive [...]