Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley) Crypto Valley Live (ID: cryptovalley) , Author: Nate Maddrey and the Coin Metrics Team, translation: Li Hanbo, reproduced by Odaily with authorization. On March 12, 2020, Bitcoin (BTC) plummeted from around $8,000 to below $4,000 within 24 hours amid mounting panic over the rapidly spreading COVID-19. Other parts of the crypto market also collapsed. Now, more than a year later, we look back at how much things have changed since that day. With the price crash on March 12, the market capitalization-to-realized value (MVRV) ratio plummeted to 0.88. MVRV is calculated by dividing Bitcoin’s market cap by its realized market cap. Historically, periods when MVRV dips below 1.0 have been the best times to invest in BTC. The indicator remained unchanged during the March 12 plunge. On March 12, 2020, the price of BTC closed at $4,959. On March 12, 2021, it closed at $57,335, an increase of more than 10 times (1000%). image description Source: Coin Metrics Network Data Charts User adoption has also grown significantly over the past year. The graph below shows the growth of addresses each holding at least 0.0000001% of the total supply. Ethereum addresses increased by 55%, from 2.52 million to 3.9 million, while BTC increased by 11%, from 5.98 million to 6.65 million. image description However, the growth rate of BTC whale addresses is faster than that of Ethereum whale addresses. The graph below shows the number of addresses holding at least 0.01% of the total supply. It is worth noting that the addresses of BTC giant whales began to increase shortly after the plunge, and there were sharp increases in November, December and January. This may be due to a surge in institutional investors throughout the year. BTC addresses with at least 0.01% of supply went from 993 on March 12, 2020, to 1,057 a year later, and peaked at 1,243 on December 27, 2020. BTC whales dropped sharply at the end of December 2020. This is most likely due to consolidation and reorganization of addresses by one exchange (or several exchanges), but the exact reason is unknown. Unlike BTC, Ethereum whales dwindled immediately after the crash and stayed down for most of the year. But they start to increase in 2021, which could be a signal for institutional investors to settle in. As of March 12, 2021, there are 1,066 Ethereum addresses holding at least 0.01% of supply, an increase of 8% from 983 in March 2020. Source: Coin Metrics Network Data Charts Stablecoins have also seen tremendous growth since the crash. Initially, stablecoins are likely to be used as a sideline during market volatility. After BTC fell, many rushed into the relative safety offered by stablecoins. But since then, stablecoin use cases have flourished. Stablecoins are now widely used in decentralized finance (DeFi) and are increasingly used to move money around the world. Stablecoins are also used in transactions, and they are used to move in and out of other crypto assets. image description Source: Coin Metrics Network Data Charts image description Source: Coin Metrics Network Data Charts image description Source: Coin Metrics Network Data Charts image description summary indicators Network Data Analysis image description network highlights In the past week, the market capitalization of BTC exceeded 1 trillion US dollars, and the price rebounded to more than 60,000 US dollars. On-chain usage has risen across the board, with BTC, Ethereum, Tether, USDC, and UNI all seeing increases in activity. The computing power of Bitcoin and Ethereum also continued to rise. The bitcoin hash rate rose 1.7% week-on-week, boosted by rising miner revenue, while ethereum hash rate rose 2.2%. network highlights image description Source: Coin Metrics Network Data Charts image description Source: Coin Metrics Network Data Chartssecondary title
