What is #PoI (Proof of Importance) ?
"Proof of Importance" is a #consensus mechanism used in #blockchain technology to validate and verify transactions on a network. It is used in the #NEM cryptocurrency network, which is based on the "#Importance" score of network participants rather than their #computing power (as in the case of Proof of Work) or their stake in the network (as in the case of Proof of Stake).
In the #Proof of Importance mechanism, the Importance score is determined by the amount of #NEM coins held by the user, as well as the number of transactions they have made in the network. The more coins held by the user and the more #transactions they have made, the higher their Importance score. This score is used to determine the likelihood that a particular user will be chosen to create the next block in the #blockchain.
The Proof of Importance #mechanism is designed to incentivize active participation in the network and discourage hoarding of #coins. It also allows for a more #decentralized network since users with a higher Importance #score are more likely to be chosen to validate transactions, rather than those with a large amount of computing power or #stake in the network. In other words, consensus reward users who actively transact in a cryptocurrency by prioritizing miners based on the amounts and sizes of transactions made from their wallets. A proof of importance system may account for additional factors, such as the wallets to and from which transactions are made.
"Proof of Importance" is a #consensus mechanism used in #blockchain technology to validate and verify transactions on a network. It is used in the #NEM cryptocurrency network, which is based on the "#Importance" score of network participants rather than their #computing power (as in the case of Proof of Work) or their stake in the network (as in the case of Proof of Stake).
In the #Proof of Importance mechanism, the Importance score is determined by the amount of #NEM coins held by the user, as well as the number of transactions they have made in the network. The more coins held by the user and the more #transactions they have made, the higher their Importance score. This score is used to determine the likelihood that a particular user will be chosen to create the next block in the #blockchain.
The Proof of Importance #mechanism is designed to incentivize active participation in the network and discourage hoarding of #coins. It also allows for a more #decentralized network since users with a higher Importance #score are more likely to be chosen to validate transactions, rather than those with a large amount of computing power or #stake in the network. In other words, consensus reward users who actively transact in a cryptocurrency by prioritizing miners based on the amounts and sizes of transactions made from their wallets. A proof of importance system may account for additional factors, such as the wallets to and from which transactions are made.
Even though the price of #Bitcoin has increased by more than 100% from its lows, there hasn't been a significant increase in the spending of older #coins. The chart presented below indicates that less than 20% of the wealth held in Bitcoin belongs to coins that are less than 3-months old, a situation typically associated with #bear cycle lows.
This implies that coins held by #Hodlers (older than 3-months) still constitute more than 80% of the wealth, despite the market's downturn in 2022 and its subsequent upswing in 2023.
Similarly, these Supply (Older than 3 month), goes below 20%, which is the sign of the Market bottomed out. Let's see how far thus data is correct π
This implies that coins held by #Hodlers (older than 3-months) still constitute more than 80% of the wealth, despite the market's downturn in 2022 and its subsequent upswing in 2023.
Similarly, these Supply (Older than 3 month), goes below 20%, which is the sign of the Market bottomed out. Let's see how far thus data is correct π
What is (#NRPL) Net Realized Profit/Loss ?
(#NURL) Net Realized Profit/Loss metric presenting the net magnitude of #profit, or loss realized by all holders spending #coins. Realized Profit/Loss is assessed relative to the price when a #coin last moved. In other words, it is the #difference between the selling price of the #investment and its #original cost basis, including any transaction #costs and taxes that were incurred in the process.
#Positive values (Above 0) indicate #profits are being realized, where price #continues to trend higher and #Negative values (below 0) indicate losses are being realized on-chain. Where price continues to trend #lower.
(#NURL) Net Realized Profit/Loss metric presenting the net magnitude of #profit, or loss realized by all holders spending #coins. Realized Profit/Loss is assessed relative to the price when a #coin last moved. In other words, it is the #difference between the selling price of the #investment and its #original cost basis, including any transaction #costs and taxes that were incurred in the process.
#Positive values (Above 0) indicate #profits are being realized, where price #continues to trend higher and #Negative values (below 0) indicate losses are being realized on-chain. Where price continues to trend #lower.
What is #MVRV Ratio ?
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
Before reaching the all-time high (#ATH), long-term holders undergo a period of re-accumulation, with a relatively stable or slightly increasing #supply held. When the market surpasses the previous #ATH, there is a #strong motivation to spend, leading to a sharp #decrease in long-term holder supply as #coins are transferred to new buyers at higher prices.
This pattern has been observed during the 2022 #bear market, highlighting the resilience of #BTC holders in the face of significant #volatility.
This pattern has been observed during the 2022 #bear market, highlighting the resilience of #BTC holders in the face of significant #volatility.
The recent downward movement of #Bitcoin, from $27,300 to $25,800 (-5.8%), has resulted in a decrease in the #percentage of supply in profit from 69% to 62.5% (-6.5%). As a result, an additional 1.26M #coins have fallen into a loss position.
This is Normal Impact on the market, in this Bear Market. If price recovers, everything will be fine.
This is Normal Impact on the market, in this Bear Market. If price recovers, everything will be fine.
What is #MVRV Ratio ?
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
What is #MVRV Ratio ?
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
What is #MVRV Ratio ?
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
What is #MVRV Ratio ?
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.