Glassnode Unveils 'Game Changer' New Tool for Reading the Crypto Market

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Glassnode’s new economic framework will help more easily account for the impact of lost coins on the Bitcoin market.

On-chain analysts at Glassnode and Ark have developed a new framework for analyzing the Bitcoin network’s “economic state.”

Instead, the framework uses a new unit of time measurement called “Coinblocks,” which are created every time a new Bitcoin block is added to the network. Then, as Bitcoin UTXOs are spent, the Coinblocks within them are destroyed.on the matter describes Coinblocks as “coin volume times blocks held.” For example, Bitcoin’s “inflation rate” is traditionally calculated “by dividing annualized issuance by total outstanding supply,” according to. When incorporating CE, however, the inflation rate weighs in the ratio of active supply to vaulted supply by multiplying the former inflation measurement by this ratio.

In an email to CryptoPotato, Check explained how Satoshi’s long-lost Bitcoin stash has long impacted measurements for commonly used metrics such as realized price – a calculation of Bitcoin’s average coin price based on the last time every network coin was transacted.

 

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