Get the best data-driven crypto insights and analysis every week: Subscribe now Layer-1 Landscape By: Matías Andrade & Tanay Ved Key Takeaways:  The innovations taking place across Layer-1 platforms is heating up, bringing changes that require us to use data to compare and contrast the different features and trade-offs offered by these different L1s. Bitcoin is evolving from a specialized chain primarily serving as a settlement layer to a more general-purpose platform leveraging its security for layer-2 functionalities, transitioning toward a more general-purpose platform ..read more

Get the best data-driven crypto insights and analysis every week: Subscribe now Bitcoin’s 4th Halving By: Tanay Ved & Matías Andrade Key Takeaways:  Bitcoin will undergo its 4th halving at block 840,000, (est. April 20th), with block rewards falling from 6.25 BTC to 3.125 BTC. Miner profitability will come under pressure with revenue from issuance halved, prompting greater efficiency in mining operations while transaction fee-based income grows in importance. Sustained or increased demand for Bitcoin may offset forced selling, decreasing issuance and drive price action ..read more

Get the best data-driven crypto insights and analysis every week: Subscribe now Solana Uncovered: An Introduction to the Solana Network By: Caron Schaller Introduction  In the dynamic realm of digital assets, layer-1 blockchains provide both the execution environments to move and manage massive value and the consensus mechanisms to secure that value. As the blockchain landscape continues to expand and evolve, we have seen fewer layer-1 developments and more vertical expansion into layer-2 and modular solutions. However, some foundational monolithic blockchains still play a vital role i ..read more

Get the best data-driven crypto insights and analysis every week: Subscribe now By: Matías Andrade & Tanay Ved Key Takeaways: Bitcoin's correlation with the S&P 500 and Gold has strengthened since the beginning of 2024, reflecting a shift in investor sentiment towards Bitcoin as both a risk-on investment and a potential hedge against macroeconomic uncertainties. The growing market share of altcoins and the surge in activity across various sectors of the datonomy classification suggest a more diverse and dynamic digital asset market landscape. The increasing open interest in Bi ..read more

Get the best data-driven crypto insights and analysis every week: Market Dynamics and Risks of Liquid Staking Derivatives By: Tanay Ved Key Takeaways: Staking on the Ethereum network has grown tremendously, with 31M ETH (~26% of supply and $120B in value) staked on the Beacon chain 9.8M ETH has been staked through Lido, representing a 31% market share Liquid Staking Tokens (LST’s) like Lido’s stETH & wstETH represent 33% of deposits on Aave V2 & $9.5B in collateral across DeFi lending markets The prevalence of LST’s across the on-chain ecosystem comes with potential market r ..read more

Get the best data-driven crypto insights and analysis every week: Subscribe now Following Flows V: Pool Cross-Pollination By: Parker Merritt Introduction  The pseudonymous nature of the Bitcoin blockchain simultaneously offers real-time visibility into the full ledger of transactions, while at the same time posing a difficult challenge of mapping addresses to specific off-chain entities. At one end of the spectrum, a single individual can spin up hundreds of wallet addresses at little or no cost. On the other extreme, centralized exchanges may custody the funds of tens of thousands of ..read more

Get the best data-driven crypto insights and analysis every week: Subscribe now Breaking Byzantine Fault Tolerance By: Matías Andrade Introduction  The paper Breaking BFT: Quantifying the Cost to Attack Bitcoin and Ethereum authored by Lucas Nuzzi, Kyle Waters, and Matías Andrade presents a novel model aimed at assessing the costs associated with breaching Byzantine fault tolerance (BFT) thresholds within the Bitcoin and Ethereum networks. Published earlier this month, the study introduces the Total Cost to Attack (TCA) metric, which serves as a pivotal tool in understanding the econom ..read more

Get the best data-driven crypto insights and analysis every week: Subscribe now At the Crossroads: Bitcoin ETFs & Coinbase By: Tanay Ved & Matías Andrade The widespread acceptance of cryptocurrencies has evolved significantly in recent times, moving from relative obscurity into the limelight. This shift has been notably propelled by the launch and remarkable performance of Bitcoin spot Exchange-Traded Funds (ETFs), capturing the attention of analysts, bankers, and technologists.  As the landscape of digital assets continues to evolve, the intersection of technology, regulation ..read more

Get the best data-driven crypto insights and analysis every week: Navigating the Avalanche: An Introduction to the Avalanche Network By: Tanay Ved & Matías Andrade Thanks for reading Coin Metrics' State of the Network! Subscribe for free to receive new posts and support my work. Introduction  Layer-1 blockchains are the beating heart of the digital asset ecosystem, serving as the foundational infrastructure for the creation and execution of smart contracts. These platforms enable a wide spectrum of applications, ranging from financial services to social media. This landscape has ..read more

Get the best data-driven crypto insights and analysis every week: Subscribe now Ethereum’s Dencun Upgrade By: Matías Andrade Cabieses We are on the cusp of a significant evolution in the Ethereum blockchain ecosystem with the much-anticipated Dencun upgrade. This update marks a substantial advancement, bolstering Ethereum's capabilities by addressing some of the ecosystem's most pressing challenges, such as unlocking Layer-2 scalability and augmenting security for node operators and validators. Source: Coin Metrics’ Labs In this week’s issue of State of the Network, we delve into the det ..read more