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Bitcoin On-Chain Metrics Strongest Among Peers – Kraken

Fredrik Vold
Last updated: | 2 min read
Source: AdobeStock / Andrey Cherlat


Key on-chain metrics tracked by the crypto exchange Kraken show that the Bitcoin (BTC) network last month had healthier on-chain fundamentals than most other blockchain networks, according to a monthly report for April.

The metrics looked at in the report included transaction fees, transaction count, active addresses, new addresses, and circulating supply growth, among other things. And according to the report, the metrics show that in general, cryptoasset network demand has declined “in April and all of 2022.”

Still, the Bitcoin network stood out among its peers, having “outperformed the observed cohort,” according to Kraken. One notable example of this, per the report, was the network transaction volume, which so far in 2022 has dropped 79.7% for Algorand (ALGO), 73.6% for Polkadot (DOT), 19.9% for Ethereum (ETH), and 2.9% for Dogecoin (DOGE).

In comparison, the daily on-chain transfer volume in US dollar terms on the Bitcoin network rose by 89.3% this year, as the only network tracked with positive growth in this metric. For the month of April, meanwhile, Bitcoin and Dogecoin were the only two networks that saw increased transfer volumes, rising by 55.9% and 132%, respectively, compared to the previous month.

Compared to April last year, however, none of the blockchain networks tracked saw their transaction volume rise.

Similarly, the number of active addresses rose by 11.8% for Bitcoin month-over-month in April, while Solana (SOL) saw the strongest growth in the group with 93.1%. Other networks, including Ethereum, Algorand, and Polkadot saw declines in the number of active addresses in April compared to the same month last year.

Lastly, the report said that on-chain indicators such as the Spent Output Profit Ratio (SOPR) and Market Value to Realized Value (MVRV) Z-score on Bitcoin, which signaled “early signs of positive sentiment” in March, turned out to be a “head-fake” in April when both indicators reversed.

And while the SOPR indicator has not yet signalled that bullish conditions could return, this would happen if Bitcoin’s SOPR “can break out of oversold territory and hold as prices rise,” the report said.

SOPR is an on-chain metric that attempts to measure whether traders are selling at a profit or loss. The metric is calculated by taking a spent output (bitcoin) and dividing its realized USD value by the price paid for it.

Bitcoin Spent Output Profit Ratio (SOPR):

Source: Kraken Intelligence

Meanwhile, the MVRV Z-score currently gives a clearer indication that BTC may soon be bottoming, Kraken’s report said.

Bitcoin’s “MVRV Z-score continues to sit slightly below a reading of 1 as prices falter, implying BTC is in oversold territory, which has historically served as a strong level of support,” the report concluded by saying.

MVRV measures a ratio of traditional market capitalization to realized capitalization, which is calculated by valuing each unit of supply (BTC) at the price it was last transacted on-chain.

Bitcoin Market Value to Realized Value Z-score:

Source: Kraken Intelligence


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