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Bitcoin Segwit’s adoption levels: What you need to know

Republished by Plato

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24 August 2017 marked the implementation of the Bitcoin Segwit protocol. With the objective of scaling the digital asset’s blockchain, it picked up speed in its initial months, but over time, its adoption began to fade, especially during 2018’s bearish winter.

Now, many developers expected that adoption levels would rise once network congestion hikes during the next bull run. Today, we are in the middle of one of Bitcoin’s strongest long-term rallies in history. So, where does that leave Segwit?

Source: Coinstats

Bitcoin Segwit adoption levels; surprising or anticipated?

Willy Woo, a popular market analyst, recently observed that Bitcoin’s monetary velocity is higher than the U.S Dollar Money Stock M1. M1 represents the short-term accounts for buying utility, and BTC’s higher position means that the asset is pushing out more transactions or moving more money than the U.S dollar.

Since network activity has been definitely higher, it seemed to be a tailor-made case for Segwit transactions to absorb some of the momentum from the said transactional movement. Oddly, that hasn’t been the case.

Source: Blockchair

According to data, Segwit adoption rates right now are lower than their all-time highs of over 60% witnessed between October 2019 and February 2020. Over the last three months, while average Segwit transactions have risen steadily, after hitting a high of 53% on 23 February 2021, the figures for the same were back below 50% at press time.

On average, transactions per day have remained under 50% of the total since September 2020, indicating that the recent bull run did little to nothing with respect to improving its previous adoption rate.

Why adoption should have improved

Source: Bitinfocharts

Between late August 2020 and December 2020, the average transaction fee was mostly under the $10-level. Since the turn of the year, however, alongside the bullish rally, average transaction fees have skyrocketed, averaging above $15 consistently. On 23 February, for instance, transaction fees climbed to a high of $31. It was around $20 on 3 March after corrections had seemingly stabilized on Bitcoin’s charts.

A higher transaction fee is a direct indication of the fact that congestion is high as well. Hence, Segwit transactions should have undoubtedly delivered a higher level of activity, but as was pointed out by Mark Erhardt of Chaincode Labs, users are continuing to pay higher fees than necessary.

Taking the plot of Segwit himself, he added that switching to a native Segwit address could easily solve this dilemma. He said,

Any hope for Segwit?

The requirement of a backward-compatible upgrade remains necessary for Segwit compatibility, but market sentiment suggests that in spite of the clear advantage, many are just not willing to undergo a shift to facilitate Segwit transfers, for whatever the reason may be.

Now, BitMEX did enable Bech32 support back in 2019, a decision implying support for Segwit. However, since then, the exchange itself hasn’t received as much activity as some of the other platforms in the market.

Ergo, the excuse of a bear market is not valid anymore to justify Segwit’s stagnancy since the bull run hasn’t invigorated any interest in it either.


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Source: https://ambcrypto.com/bitcoin-segwits-adoption-levels-what-you-need-to-know

Blockchain

Solana (SOL) price rises as airdrops attract new users to the network

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Over the past six months blockchain projects that have issued token airdrops have re-emerged. Most notably, the airdrops by Uniswap (UNI) and MEME will be remembered as recipients were rewarded with gains ranging from $20,000 to $600,000 simply for holding the tokens.

One Ethereum (ETH) competitor that has seen numerous projects launch with airdrops in the past three weeks is Solana (SOL), an open-source project that focuses on utilizing blockchain technology to provide decentralized finance solutions.

While Solana isn’t explicitly making a concerted effort to launch these projects, the protocol’s main decentralized exchange Serum (SRM) was responsible for the recent COPE airdrop which distributed 2,000 tokens to users who participated in the joint DeFi hackathon held by Solana and Serum.

After the airdrop, COPE eventually listed on Serum for $0.50 on March 30 and the price of the token surged to a high of $5.43 on April 11, rewarding holders with a $10,860 reward.

SOL/USDT 4-hour chart. Source: TradingView

The success of the COPE airdrop prompted a series of token launches and airdrops with similar-sounding names including HOPE, ROPE and KOPE, whose launches on the Solana blockchain have coincided with a 55% rise in the price of SOL since the start of April.

Airdrops on the network may have played a small role in the recent price appreciation due to users needing SOL to receive airdropped tokens but this is not possible to ascertain based on the available data.

Interactions on the Solana blockchain, including the addition of new tokens to the Sollet wallet, require small amounts of SOL to complete the contract executions. Thus, users rushing to sign up for airdrops before they filled up would have needed to purchase SOL and fund their wallets in order to create new addresses for the airdropped tokens.

Analysts expect the airdrop trend to continue

For those worried that they missed out or that the ‘airdrop season’ is over, a recent tweet from Solana’s Twitter feed suggests that the Solana ecosystem is just getting started, meaning the likelihood of future airdrops remains high.

New users are the lifeblood of successful blockchain networks, and the use of airdrops continues to be one of the most utilized methods for drawing attention to fledgling projects and sapping liquidity from one protocol to another.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/solana-sol-price-rises-as-airdrops-attract-new-users-to-the-network

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Why Bitcoin below $60K could be a great buying opportunity

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Bitcoin seems to be losing steam as it trades back and forth between $59,000 and $60,000. In the daily chart, BTC is moving sideways (0.3%) after a week with modest gains of 4.9%.

Bitcoin BTC BTCUSD
BTC moving sideways in the daily chart. Source: BTCUSD Tradingview

Trader Josh Rager has set support for BTC at $59,000. Holding this level could give it enough momentum to retest the $60,600 area. The trader expects “new highs” by Wednesday.

On-chain data seems to support this prediction, as shown by CryptoQuant shared by “Byzantine General”. BTC reserves for the spot market continue their downtrend and indicate a “consistent demand”. This trader said:

Except for those 2 inflow outliers most significant flows have been outflows. This massive consolidation range that we’re in sure looks a lot like re-accumulation.

Further evidence suggests that Bitcoin’s current price action is driven by institutions unlike the previous bull-run in 2017. Besides from Google search volume for “Bitcoin” is at a relatively low, Coinbase trading volume has skyrocketed since Q3 and Q4, 2020.

However, on this metric, the percentage of retail investors has trended downwards, as the following graph demonstrates. The trader said:

Last bull run we were talking about institutions coming, but now they’re actually here, and they’re buying.

Bitcoin BTC
Source: IntoTheBlock

Bitcoin 4 years cycles could change

On April 14, crypto exchange Coinbase will go public on the U.S. stock market. Under the ticker » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>COIN, the trading platform will be one of the first major crypto companies on the traditional market.

This moment converges with VISA testing stablecoins, PayPal expanding its crypto services, Tesla integrating Bitcoin as a payment method. The above could play an important role during this week as the 14th approaches. The trader said:

That doesn’t mean there won’t be any corrections anymore. Of course not, I mean we’ve seen three massive (liquidations) corrections this year alone. But, this bull run could be different. Maybe the 4 year cycle structure that we’re used to from bitcoin could break.

Two additional key metrics are the percentages of BTC trading above 1 Trillion USD market cap and the amount of BTC on exchanges. The former is estimated at 11% as BTC’s price trades above $53,000 which points to a “validation” of the current price, as stated by analyst William Clemente.

Bitcoin BTC
Source: Glassnode

On the latter, there is a correlation between the miners and long-term holders keeping their BTC and the increased supply outflow from the trading platform. Clemente added:

In combination with exchange withdrawals, supply is becoming increasingly illiquid. This means the new wave of institutional demand (just beginning) must compete for the mere 2.3M coins left on exchanges.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/news/why-bitcoin-below-60k-could-be-a-great-buying-opportunity/

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Reddit reminisces defunct ‘Bitcoin faucet’ website that gave away 19,700 BTC for free

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Reddit’s r/Cryptocurrency community revived an interesting piece of Bitcoin (BTC) history on Sunday, with a new thread reminiscing about the time that American software developer Gavin Andresen gave away 19,700 BTC. 

A thread started by “uGroundbreakingLack78” took the Reddit community all the way back to June 2010 when Andresen first launched the so-called Bitcoin faucet website. Using the domain “freebitcoins.appspot.com,” Andresen allowed users to earn 5 BTC per day just by solving a captcha, which is a program intended to distinguish human from machine input.

User “uGroundbreakingLack78” explained:

“To fuel the first faucet, Andresen loaded it with 1,100 BTC of his own. After these were given away, the faucet was reloaded, with early bitcoin miners and whales also donating coins.”

The faucet’s creator announced his “really dumb” idea of giving away free BTC on the now infamous Bitcointalk forum in a post that appeared June 11, 2010. His motivation: “[…] I want the Bitcoin project to succeed, and I think it is more likely to be a success if people can get a handful of coins to try it out.”

Andresen played a major role in development during Bitcoin’s formative days. He was the main software developer for BTC’s reference implementation, having joined the core development team in 2012 after Satoshi Nakamoto, Bitcoin’s pseudonymous founder, announced they would be leaving the project.

Although the Bitcoin faucet website is no longer functioning, a screengrab of the domain’s homepage revealed a very basic setup where users can earn BTC and set up their digital wallet. The Bitcoin faucet reportedly gave away 19,700 BTC to users just for solving a captcha. Those BTC are worth almost $1.2 billion at today’s prices.

The Bitcoin faucet website, as it appeared sometime in 2010. Image via Reddit

With Bitcoin in the midst of yet another bull market, many investors would love to get their hands on just 5 BTC. However, that’s easier said than done at current values. Given the apparent shortage of BTC on major exchanges, the flagship digital currency could be poised to go higher in the short term. On-chain data reveals that Bitcoin’s moonshot could still be months away, which means investors remain overwhelmingly bullish.

The Bitcoin price peaked just below $62,000 in mid-March before the rally paused and altcoins played catch-up. At current values, Bitcoin’s market capitalization exceeds $1 trillion. Major institutions and corporations have invested in the digital asset as a hedge against currency debasement, among other motivations.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/reddit-reminisces-defunct-bitcoin-faucet-website-that-gave-away-19-700-btc-for-free

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