Numerous metrics could be used to determine cycle tops and bottoms but realized cap HOLD waves are rarely mentioned in the bunch.
Also referred to as HODL waves, the metric represents the bundle of all active supply age bands. In the chart below, each colored band shows the percentage of all circulating Bitcoin that was last moved within a certain time frame, weighted by its realized price.
Data from Glassnode has shown that 80% of Bitcoin’s circulating supply sits in the hands of long-term holders (LTHs). Defined as users that have owned Bitcoin for at least six months, LTHs are usually the ones forming strong support for Bitcoin’s market cycle bottoms.
LTHs are considered to be “smart money” in Bitcoin markets and are usually seen accumulating Bitcoin during suppressed markets. Once a bull market sets in, LTHs are the ones distributing the accumulated Bitcoin and taking most of the profits.
On-chain data strongly supports this theory. The chart above clearly shows that each time Bitcoin claimed a new all-time high (ATH), LTHs sold off their holdings. During every cycle bottom, LTHs are the hodlers of last resort, providing Bitcoin with strong support.
Glassnode’s analysis of long and short-term holder supply in profit and loss further supports this claim.
The chart below shows that 80% of Bitcoin’s supply lies in the hands of LTHs, which are marked blue. The remaining 20% of the supply is held by short-term holders (STHs) and is marked red. Overlapping the blue and red zones of the chart with Bitcoin’s price movements shows that LTHs saw almost no capitulation this market cycle — their holdings dropped from 82% to 80% of the supply.
The 2% decrease is considerably lower than what we’ve seen in previous cycles, showing that the market has been putting in lower highs. As these lower highs reinforce the strength of the network, LTHs seem to reinforce their belief in Bitcoin’s value. The bear market that began in May saw only a small percentage of Bitcoin’s supply move from LTHs to STHs, as LTHs saw it as an opportunity to either hodl or continue accumulating Bitcoin.
While the ongoing bear market looks eerily similar to all previous market cycle bottoms, it’s still too early to know if the industry’s about to head in a more bullish direction. However, if Bitcoin has reached this cycle’s bottom, we could expect a recovery in the coming weeks.
Cryptocurrencies:- Investors Making New Connections in Valuations
In the last couple of years, investors in the NFT (non-fungible token) space have raised an important factor above all else: “the community.” It seems as if an NFT’s brand and its community are becoming one. The community, after all, defines the brand’s value.
All that being said, it will become increasingly important for investors and holders to establish a rubric for accessing NFT communities if the term “community” continues to drive investors to invest. Many metrics could make up this rubric. However, you can everyone bundle into one almighty factor: virality.
In the world of NFTs, virality drives value. Virality inflated numerous NFT valuations in the past two years. These projects get a boost from the likes of Twitter, which spreads them like, well, a virus.
NFT Virality
The connection between brand and narratives exists everywhere. From Lebron James’ Nikes to Federer’s Rolex, brands, especially luxury ones, dump copious amounts of dough into these images. What starts as a marketing campaign in the board room manifests as a narrative to the consumer. Contrasted with a smaller shoe or watch brand with less money for “big name” marketing, the consumer concludes, consciously or otherwise, that Nike and Rolex are the brands of winners. In effect, these brands went viral.
NFT purchasers can be profiled just as viruses can. The actual and prospective buyers of an NFT collection decide its ultimate value. Some collections appeal to tight coteries of buyers with niche interests. If so, the potential trajectory of that collection in terms of value will be limited.
Other collections gain value through scarcity, celebrity endorsements, or sometimes organic events. Wider appeal and a more-monied clientele project broader, richer markets. For creators and artists, narratives within their work bridge the gap between esoteric and attractive to a celebrity with a huge social media following is the golden ticket.
A prime example of this is the Cryptopunks collection. As of September 2021, the cheapest NFT in this collection was $400,000 whereas just a year before the price was a meager $1,000 to $2,000. The only difference? Crypto insiders, celebrities, and Mark Cuban had become club members. Cuban even went as far as calling Punks “the rookie card of NFTs.”
It’s safe to say the fervor for Cryptopunks has died a little as of late. All of the top Ethereum NFT collections have taken enormous hits over the last two months as part of the broader crypto market crash. However, as of this week, the cheapest-available Punks NFT tops out at $100,000, which it hasn’t done in months. The rise comes after two substantial sales in the collection totaling $5.9 million.
The similarities between sneakers and NFTs only go so far. Cryptocurrency can still be volatile as it goes through growing pains while sneaker sales remain consistent. One thing is for sure though, investors are attuned to how other sectors create narratives to drive their brands to create community and virality.
Cryptocurrencies:- BNB Was the Top Ten’s Best Market Performer in Q2, Bitcoin Takes Second Place — Solana Performed the Worst – Market Updates Bitcoin News
With the first half of the year gone, statistics from the second quarter of 2022 indicate that the crypto economy has tumbled significantly in value, and crypto tokens in the top ten market positions have lost 30% to 60% in USD value during the past three months. Q2 data further shows that binance coin managed to avoid the losses its competitors have taken, and solana was the worst market performer out of the top ten crypto assets by market capitalization.
Top Ten Crypto Assets Suffered Significant Losses During the Last Quarter
It’s been a crazy Q2, to say the least, as numerous crypto assets within the digital currency economy are at much lower values than they were three months ago. During the second quarter of 2022, bitcoin (BTC) for instance, shed 42.92% of its value against the U.S. dollar.
Statistics also show that ethereum (ETH), the second-largest crypto asset by market cap, lost 47.24% over the last three months. While much of the crypto economy’s losses stemmed from the aforementioned two crypto assets, a wide variety of top-positioned digital currencies have shed massive value.
The Binance Smart Chain network’s BNB, however, is only down 33.67% in Q2, which makes BNB the best performer during the second quarter among the top ten crypto assets. BTC’s 42% plunge was the second best market performance out of the top ten, while cardano (ADA) managed to capture the top ten’s third best market performance in Q2.
ADA lost 45.49% in value against the U.S. dollar in three months. XRP lost 48.99% in Q2, while dogecoin (DOGE) lost 48.51%. Solana (SOL) was the top ten’s worst market performer as it lost 59.19% during 2022’s second quarter.
Dozens of Relatively Unknown Tokens Rise, $930 Billion Erased from the Crypto Economy in Q2
Most of Q2’s top-performing crypto assets that are not in the top ten positions were relatively unknown digital currencies. The largest gains recorded in Q2 were captured by the tokens like smartofgiving (AOG), followed by pitbull (PIT), and bosagora (BOA). The worst performers in Q2 include bluesparrow, piedao, terra luna classic, and wrapped terra luna classic.
Hundreds of coins out of the 13,414 crypto assets traded on 514 exchanges worldwide have lost more than 90% in value in Q2. In contrast, there are only a few dozen crypto assets that did perform well compared to the hundreds of coins that lost value during the second quarter. During the last three months alone, $930 billion in USD value has left the crypto economy.
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Cryptocurrencies:- Shiba Inu Down By 2.03%
Shiba Inu price has dipped by 2.03% overnight and is now at a current price of 0.000012 USD. Nevertheless, the most popular meme coin is now ranked as the 15th largest crypto according to market cap.
SHIB currently has a live market cap of $6,573,280,152 USD and with $428,085,679 USD of 24-hour trading volume. The coin currently has a total circulating supply of 549,063,278,876,302 SHIB coins.
Despite the entire crypto space in the red for the past couple of months, SHIB has been performing well and have in fact raised their price by 31%. With that being said, many crypto investors have started to take SHIB way seriously.
In the face of the crypto crash and with major cryptocurrencies like Bitcoin, Ethereum, and others bleeding, Shiba Inu was still able to resuscitate many crypto wallets.
Shiba Inu Can Outperform TRX and BTC?
Shiba Inu has in fact outperformed Bitcoin and is gaining traction despite the turbulent crypto crash happening. The meme coin has been taking strides in maintaining the uptrend pattern. It has been consistently going for that positive momentum with much collaboration and projects happening that will ultimately take SHIB to the next level.
SHIB investors loved the experience of having a 34% boost with a breakout point pinned at US$0000116 as seen in the Shiba Inu price in June this year. The token is definitely winging it with a bullish streak signaling that the market is steering closer to a bullish run.
Many SHIB investors are looking forward and optimistic for the meme coin to go over the US$0.0000139 zone very soon.
With the issue concerning Shiba Inu hitting $1, Ethereum whales have definitely set their eyes on the top meme coin to gain as much as 11% and 24% respectively this current month.
The overall market trend is looking bullish for SHIB and the trajectory is uphill. With that in mind, many ETH whales have been hoarding and adding a total of $560 million SHIB tokens into their portfolios; that consist of around 22% of their entire digital assets.
SHIB To Launch SHIB.io Metaverse
SHIB investors are also excited with Shiba Inu developmental projects in collaboration with The Third Floor such as Shibarium, which is a SHIB.io metaverse together with the SHIBASWAP V2 and SHI token that aims to design virtual environments or a metaverse. https://learnearnly.com/?p=144
Shiba Inu has recently launched this burning portal that is designed to reward investors. With the increased amount of pressured placed on the demand and supply of SHIB, the meme coin also skyrocketed in price.
SHIB is now outpacing Tron (TRX) in terms of total market cap. Tron has a market cap of $6.33 billion while SHIB has a total market cap of $6.66 billion.
The total SHIB supply is currently at 589,625,603,102,909 and the total that has been burned out of the initial supply is at 410.37 trillion.
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