Only 12.90% of Bitcoin Supply Held by Cryptocurrency Exchanges
Bitcoin investors appear to be content with simply holding on to the cryptocurrency, predicting that its price will continue to rise faster than the prices of alternative cryptocurrencies. Research firm Glassnode disclosed in a recent report that only 12.9 percent of the total supply of Bitcoins has been circulating on various cryptocurrency exchanges since August of this year, representing a decrease from previous estimates.
There are presently approximately 18.8 million Bitcoin crypto tokens in circulation, accounting for more than 90 percent of the total 21 million tokens that were pre-decided to be created by Bitcoin’s anonymous creator, Satoshi Nakamoto, before the cryptocurrency’s launch.
When this article was being written, Bitcoin’s current price was hanging around its recently established all-time high of $70286 according to the Gadgets 360 tracker. Bitcoin is the world’s oldest cryptocurrency and has been in existence since 2009. As Bitcoin surged to a new all-time high, the amount of Bitcoin held by “long-term holders” (LTHs) achieved “peak HODL,” according to the Glassnode report.
According to CoinSutra, the term “HODL” was originally a misspelling that has since evolved into a funny backronym that means “Hold on for dear life.” “At this point in time, they collectively possessed a local maximum of the entire currency supply, in this case 81.5 percent, of the total coin supply.”
“LTHs have spent 0.73 percent of the coin supply back into liquid circulation since then,” according to the research. According to the data, if investors were not satisfied with simply holding on to their Bitcoin assets, they would have maintained more tokens on exchanges, ready to sell, but this does not appear to be the case at the moment.
“Despite the fact that it is hovering just below all-time highs, on-chain activity is only barely over bear market levels,” according to Glassnode’s analysis. Another finding of the survey is that the rate at which new Bitcoin wallets transmit or receive Bitcoins has increased in recent years as well.
On November 9, 516,914 new addresses had participated in a transaction, indicating a whopping 72 percent increase in the number of newcomers who were sending or receiving Bitcoin since the beginning of August, according to the Bitcoin Transaction Log.
Since its inception in 2009, Bitcoin has risen to become the most valuable cryptocurrency in the world, surpassing all others in terms of market capitalization. In 2009, the price of a single Bitcoin token was $0.0008, which is a far cry from the current levels.
According to CoinMarketCap, the current live market capitalization of Bitcoin is $1,244,763,098,851 dollars. At the same time, the popularity of Bitcoin is growing at an alarming rate. It was in September when El Salvador, a country in Central America, became the first government in the world to recognise Bitcoin as legal cash.
For example, in the United States, the city of Miami has established “MiamiCoin,” a Bitcoin-based native token, with ambitions to convert the proceeds into Bitcoin for its people.