Look at the various segments of the blockchain industry, they seem to be responding to events in the wider world. While one segment such as non-fungible tokens (NFTs) could see a sudden surge in interest and investment, other areas such as decentralized finance (DeFi) it may slow down or stagnate. It is no different in the month of August, which saw positive signals such as the number of long-term holders of Bitcoin almost reaching its previous all-time high of over 13.6 million. Other segments, such as GameFi, saw a 13.8% drop in new users since July.
For those involved in the blockchain industry, it is important to keep an eye on different areas of the market, and Cointelegraph Research’s latest Investor Insights analyzes key indicators from different sectors of the blockchain industry. Analyst Cointelegraph Research looked at 10 segments in the blockchain space, including regulation, cryptocurrency mining, security tokens, bitcoin (BTC) and ether (ETH) derivatives and venture capital activities.
Long-term Bitcoin holders near all-time highs
At the end of August, the supply held by long-term Bitcoin holders was 6,000 coins since reaching the ATH of 13.61 million. Long-term holder supply is the number of coins that haven’t moved in 155+ days. This amounts to 70.6% of the total outstanding supply and is the threshold at which future sales and spending are less likely.
A number this high means a very bullish signal that gives insight into the supply that may be in the market in the future. However, this is only one side of the supply and demand equation, and cryptocurrency does not operate in a vacuum outside of overall macroeconomic conditions. As seen in the chart below, the price of BTC fell even as the supply left the market.
NFTs, crypto stocks and venture capital are flashing warning flags
Most segments analyzing August in the latest report show Investor Insights scores indicating a warning phase. This includes NFTs that have seen lending protocols like BendDAO suffering from liquidity problemswhich gives some great opportunities to get into high-value blue-chip NFT projects.
Venture capital (VC) saw a continued decline in investment capital in August by more than 31% compared to the previous month. Perhaps this is not a surprise, as companies try to remain risk-averse in these uncertain times and invest mostly in solid projects with a long-term time horizon. This trend can also be seen in crypto stocks, with the chart below showing several companies with stocks with negative monthly returns.
Cointelegraph Research Team
Cointelegraph’s research department includes some of the best talent in the blockchain industry. Combining academic rigor and filtering through practical, hard-won experience, the researchers on the team are committed to delivering the most accurate and understandable content available on the market.
Demelza Hays, Ph.D., is the Director of Research at Cointelegraph. Hays has assembled a team of subject matter experts from across finance, economics and technology to bring to market a world-class source of industry news and insightful analysis. The team uses APIs from various sources to provide accurate, actionable information and analysis.
With decades of combined experience in traditional finance, business, engineering, technology and research Cointelegraph Research Team is perfectly positioned to put its combined capabilities to good use in the Investor Insights Report.
Disclaimer: The opinions expressed in the article are for general information purposes only and are not intended to provide specific advice or recommendations for any person or specific security or investment product.