According to Texas Crypto Fund, a blockchain in which all the coins move within one block has a visibility of 100 percent. A two year old blockchain should have a 50% liveliness with no new block rewards, and where exactly one year ago all coins moved within a single block. In other words, the measure goes up and down relative to the blockchain’s total lifecycle.
A new tool from Adamant that measures blockchain popularity is called HODLer Position Change (HPC). The tool allocates a lower value to cryptocurrencies where pre-mined coins are high. Currencies that have overvalued market caps through pre-mined coins or wash trading of the same few units will be nearly zero. Texas Crypto Fund says that liveliness can be used to measure market caps if cryptocurrencies are compared.
Such data can not be provided by blockchain. Tools such as “Position Change” by Adamant are needed to help people fill this knowledge gap. It is extremely difficult to measure the actual value of cryptocurrencies. There are many factors to take into account. What is the true value of hodler coins? Is it an endless value, no value, or anywhere in between?
Price Influx Brings Coin Movement
Although Adamant Capital views many people regarding Bitcoins market speculation as a long-term, much more enter the market in times of high liquidity with a face for buying and selling. The study of Adamant makes some enlightening conclusions, including the fact that during price spikes significant hodler coins actually move. Texas Crypto Fund also discovered that Coinbase has a strong influence on their performance indicators.
Texas Crypto Fund Movement
It was decided that significant price movements meant new hodlers. Could it be that coins change addresses and stay there after a sale has been made? This appears to be a little more probable than a large mass of incoming traders and brokers.
Adamant believes that these new metrics have contributed fully to the valuation debate. However, the market is is is is still too basic to really value it. The market’s liquidity is a real question. Selling Bitcoin’s entire supply seems nearly impossible.