Bitcoin has set a latest all-time high (ATH) beyond the $98,000 level today, as on-chain data shows cryptocurrency inflows have rocketed up.
Crypto Market Capital Inflows Now Sit At Almost $63 Billion Per Month
In line with the most recent weekly report from the on-chain analytics firm Glassnode, the cryptocurrency sector has been observing the injection of a major amount of capital recently.
To calculate the netflows into the sector as a complete, Glassnode has made use of two metrics: Bitcoin + Ethereum Net Position Change and Stablecoin Net Position Change. The primary of those keeps track of the web changes happening within the combined Realized Cap of BTC and ETH. The “Realized Cap” is an on-chain capitalization model that considers the last price at which a token was transacted on the blockchain as its ‘real’ value.
Considering that the previous transaction of any coin was likely the last point at which it modified hands, the value on the time would denote its current cost basis. As such, the Realized Cap is actually a sum of the fee basis of all tokens within the circulating supply.
One strategy to interpret the model, due to this fact, is as a measure of the quantity of capital that the investors of Bitcoin and Ethereum as a complete have invested into the cryptocurrencies. When the Realized Cap changes, capital flows in or out of those coins. Thus, BTC + ETH Net Position Change, which tracks these changes, reflects the USD netflows happening for the highest two assets.
The Stablecoin Net Position Change, the second metric of relevance here, simply measures the capital netflows for the most important stablecoins by tracking the changes going down of their combined supply.
The rationale the Realized Cap isn’t required for these assets is that their value stays fixed across the $1 mark; this makes it in order that their Realized Cap is all the time equal to the Market Cap, which in turn is akin to the circulating supply with the unit modified.
Now, here is the chart published by the analytics firm within the report that shows the trend within the 30-day combined value of the BTC + ETH and Stablecoin Net Position Change over the previous couple of years:
The worth of the metric appears to have seen rapid growth in recent weeks | Source: Glassnode's The Week Onchain - Week 47, 2024
From the graph, it’s visible that this combined indicator has witnessed a pointy rise contained in the positive territory recently, which suggests large net capital inflows into the assets.
“Over the past 30 days, aggregate inflows have reached an enormous $62.9 billion, with Bitcoin and Ethereum networks absorbing $53.3 billion, while stablecoin supplies have expanded by $9.6 billion,” reads the report.
While these inflows don’t represent a precise measurement for the cryptocurrency sector as a complete, they do act as a very good approximation as a lot of the capital that flows into the market does so through Bitcoin, Ethereum, and the stablecoins. It’s only after a rotation from these major assets that the altcoins get their fuel.
Bitcoin Price
Bitcoin had surged near $98,400 earlier within the day, but its price has since seen a pullback because it’s now right down to $97,100.
Looks like the value of the coin has been marching up recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, Glassnode.com, chart from TradingView.com