If we look at the different segments of the blockchain industry, it seems that they react to events in the world at large. While one segment, like NFTs, could see a surge in interest and investment, other areas, like decentralized finance (DeFi), could slow down or stall. The month of August was no different, as positive signs were seen, such as the number of long-term Bitcoin holders coming close to reaching its all-time high of over 13.6 million. Other segments, such as GameFi, saw a 13.8% drop in new users in the space since July.
It is important for those involved in the blockchain industry to keep a finger on the pulse of the different areas of the market, and Cointelegraph Research’s latest Investor Insights looks at the key indicators of the different sectors of the blockchain industry. The Cointelegraph Research analyst examined 10 segments of the blockchain space, including regulation, cryptocurrency mining, security tokens, Bitcoin (BTC) and Ether (ETH) derivatives, and venture capital activities.
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Long-Term Bitcoin Holders Approach All-Time Highs
At the end of August, the supply of long-term Bitcoin holders was 6,000 coins away from reaching its ATH of 13.61 million. Long-term holder supply is the number of coins that have not moved in more than 155 days. This represents 70.6% of the total supply in circulation and is the threshold from which the probability of selling and spending in the future decreases.
Such a high number signals a very bullish signal, giving an idea of the supply that may be in the market in the future. However, this is only one side of the supply and demand equation, and cryptocurrencies do not act in a vacuum outside of general macroeconomic conditions. As can be seen in the chart below, the price of BTC went down even as supply left the market.
NFTs, Cryptocurrency Stocks, Venture Capital Show Caution
Most of the segments looking at the month of August in the latest report show an Investor Insights score denoting a phase of caution. This includes NFTs, which saw lending protocols such as BendDAO suffer from liquidity problems, giving some great opportunities to get into high-value NFT projects.
Private equity (VC) saw the continuation of private equity’s downward trend in August, down more than 31% from the previous month. Perhaps not surprisingly, as companies seek to remain risk averse in these uncertain times, investing primarily in solid projects with long time horizons. This is a trend that is also seen in the shares of companies that handle cryptocurrencies, with the chart below showing several companies with shares with negative monthly returns.
The Cointelegraph Research Team
Cointelegraph’s research department is made up of some of the best talent in the blockchain industry. Bringing together academic rigor and filtering through hard-earned, practical experience, team researchers are committed to bringing you the most accurate and insightful content available on the market.
Dr. Demelza Hays is the director of research at Cointelegraph. Hays has assembled a team of subject matter experts from the fields of finance, economics and technology to provide the market with the leading source for industry reports and insightful analysis. The team uses APIs from various sources to provide accurate and useful information and analysis.
With decades of combined experience in traditional finance, business, engineering, technology, and research, the team at Cointelegraph Research is perfectly positioned to put their combined talents to proper use with the Investor Outlook Report.
Disclaimer: The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or about any specific security or investment product.
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