Bitcoin and Ethereum rise in value as active supply dips

The active supply of Bitcoin and Ethereum, the two dominant cryptocurrencies on the list, is at its lowest when it comes to active supply. The comparison is sharp compared to the numbers they demonstrated during their peak times. Interestingly, the development has come ahead of the halving process, which is tentatively scheduled for April 2024.

Bitcoin’s active supply is 30.12%, and Ethereum’s active supply is 39.15%. The peak value was in March 2017–2018 and July 2016–2017 for Bitcoin and Ethereum, respectively. That is when the figures were 59% and 86% for both tokens in the said order. This supply reflects the volume at which tokens are exchanging hands.

Their values are performing better on the trading platform, making the community less affected. At the time this article is being written, BTC is being traded at $37,228.88. This corresponds to a 24-hour and 7-day increase of 1.84% and 0.78%, respectively. ETH has traversed $2,003.72, an increase of 2.32% over the previous twenty-four hours and a decrease of 1.86% over the past week after surpassing the $2,000 threshold.

Circling back to the supply that has exchanged hands. Bitcoin, in the last 3 years, has witnessed a supply of 58.58%. For the last five years, the same segment has fallen to 70.13% from 83%. The market cap is up by 1.85% for BTC and 2.40% for ETH.

BTC is likely to continue gaining momentum in the coming days, as per the Bitcoin price prediction. The statement comes in the wake of a development where Ferrari has announced that it will accept Bitcoin as a payment option. This is specifically applicable to the purchase of high-end vehicles. Ferrari has partnered with BitPay to facilitate a secure payment gateway for customers who intend to leverage their digital token for a luxury car.

Ferrari has enabled BTC as a payment method in 10 select locations, including Purosangue, SF90 Stradale, and Daytona SP3. Chances are that Ferrari will soon expand the service to more locations.

Experts from the cryptocurrency and automobile fields call this a pivotal moment in 2023 for both industries. While there is less clarity about adopting this expansion, Ferrari has hinted that it has done so to align its operations with the environmental goal of achieving carbon neutrality by 2030.

Tesla is on the same path, except it promoted Dogecoin under the influence of Elon Musk. This has paved the way for crypto enthusiasts to boost their holdings and potentially bring more users on the board. The active supply taking a dip is likely due to the sentiment of accumulating the token until it inches closer to its all-time high value. Application of the statement is leveled for BTC and ETH, along with other tokens that are eyeing recognition.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

Related Articles

Back to top button