Data analysts website, Coinmetrics, released a new on-chain indicator, the ‘free float supply of cryptocurrencies.’ A look at the free float of Bitcoin and its hard forks reveals that coins haven’t yet been claimed by many users. Moreover, the difference between current and free float supply is way smaller is other altcoins.
The free float supply represents the number of assets that is currently liquid in the market (available for immediate purchase). The difference in their supply takes us back to a journey to the early days in Bitcoin.
Bitcoin [BTC] itself shows a discrepancy between the current and free float supply of about 24% (4.1 million coins). These seem to include the coins lost ‘in limbo’ (to eternity). The lost coins include lost private keys and thefts dating back to 2010. It also seems to account for coins that haven’t been moved since for a long-time (> 5-year hodl wave percentage is at the peak at 5.77%). These account for at least 3 million of the unmoved supply, which is bound to resonate on BCH and BSV.
The Fork Story
However, given that rest of the coins were mined after the fork, the difference the free float supply confirms Nic’s claims. The percentage of ‘not free float supply’ of BCH and BSV is 34.8% and 46.1%. Given, BSV was forked out of BCH, the difference represents the second degree of cryptocurrency users opting out. Moreover, it also threatens a potential sell-off in the market from those users who can still claim their forked coins.
You ever get the feeling that the ‘market cap’ of forks is overstated because half of those coins aren’t even activated on the fork? yeah, me too.
A look at the realized capitalized of the hard fork portrays a worse image. The realised (on-chain) capitalization of BTC has been making new All-Time Highs (currently at $107.1 billion), while BCH and BSV have failed to gain much on-chain traction since the forks. The realised capitalization of BCH and BSV is 4.4% and 1.3% of BTC.
The free float supply of other top altcoins (ETH, LTC, XMR, EOS, and so on) is almost at par with their current supply.
What do you think about the free float supply of pre-mined coins like XRP? Please share your views with us.
- Ethereum’s Futures Open Interest hit a 3-month low, what does this mean for the market?
- Professional Mining from Digital Mining Experts Is Now Available via GMT
- Just-In: Georgia Binds Its Residents in Holy Oath Against Bitcoin Mining
- Wager Based 3D PVE/PVP Arena Battler Engines of Fury Storms GameFi With Incredible Content
- Shiba Inu (SHIB) Devs Begin to Fix Recent Issue of ‘Wormhole’ Addresses’; Here’s All You Need to Know
- BNY Mellon Sees Meaningful Revenue In Crypto by 2023 Post Clear Regulations
- Moody’s Confirms El Salvador’s Ratings Unchanged After President Bukele’s Reactive Tweet
- Luxury Car brand Lamborghini joins the NFT Bandwagon
- Mercedes Taps NFT Creators In Celebration of G-Class Series
- Why Ethereum (ETH) Price May Explode Coming July?
- Solana Creeps Higher, Looks To Revisit January Highs AT $177.0
- Ethereum Price Analysis: Fibonacci Retracement level 0.618 Triggers Recovery Rally In ETH Coin
- BTC Price Analysis: Death Crossover Brings Nightmares On Satoshi Street; Is This A Buying Opportunity?
- Bitcoin Death Cross Haunting Investors, Will BTC Make or Break?
- DOGE Price Analysis: Highly Influential Bearish Trendline Undermines Bullish Attempts; Buy, Sell Or Hold?
- Terra Price Analysis: Will LUNA Price Bounce Back at 0.382 Fibonacci Retracement?
- SAND Price Analysis: Sandbox Price Losses 50% Retracement Level, Good Time to Buy?
- LINK Price Analysis: Chainlink price reclaims 200-day EMA, Emerging trendline Suggests More Upward Price Movement
- Harmony Price Analysis: Rising Parallel Pattern Could Lead 30% Growth In $ONE Price
- Ripple Price Analysis: XRP Bears Struggle To Breach $0.7 Support Zone, Is A Reversal Next Move?