- The on-chain activity of Bitcoin is on the rise
- Bitcoin network sees an influx of new Bitcoin traders and investors
- Bitcoin is currently undervalued due to its on-chain activity
Bitcoin News Today – Over the past couple of months, the on-chain activity of Bitcoin has been on the rise, marking an enormous increase from where it was by this time last year. This shows that the fundamental of Bitcoin (BTC) is very strong, as it shows that more individuals and entities are interacting with the network of Bitcoin at a greater rate than seen by this time last year.
It also means that the digital currency might be in a far better position now than it was during the previous uptrends. The “Market Cap to Thermocap Ratio” of Bitcoin confirms this notion, suggesting that the world’s largest digital currency by market cap is undervalued on the total revenue generated by the activity on the network.
Bitcoin (BTC) Price Today – BTC / USD
Activities on the Bitcoin Network Is on the Rise
Bitcoin (BTC) has been enjoying some bullish favors over the past week. The digital currency has been in the green, hitting new levels it has not tested over the past year. Bitcoin recently surged from the low of $9k to the highs of $12k. The digital currency is currently consolidating at press time, but it still seems to be well-positioned to record more upside gains in the near term.
There is a massive increase in the number of unique addresses used by investors, and this also proves that the network of Bitcoin is being heavily interacted with. This indicates that new investors are coming in the BTC space, and this might be the source of the technical strength of the digital currency.
The number of unique Bitcoin addressed used by investors has been on the rise over the past year. Because this ongoing uptrend is being backed by many investors and traders, it likely has more room to surge higher before it starts running out of juice.
Bitcoin Is Currently Undervalued Based on Its Increased Network Activity
Glassnode – an analytics platform – recently released a chart that shows that BTC remains undervalued at current price levels.
“The Market Cap to Thermocap Ratio indicates if an asset is trading at a premium with respect to the total revenue generated by the network (aggregate security spend). Bitcoin’s current value is still at very low levels – 5-10x away from previous tops.”
From the chart, the metric still sits far below where it has been during past uptrends, the world’s most dominant digital currency may have more than enough room to surge higher before it enters the overvalued territory. At press time, Bitcoin is consolidating around $11,700 area, and it might continue its upside move soon.