- About 92% of bitcoin holders are now in earnings related to when they first bought.
- Crypto assets close to their record have even higher numbers of investors in profit.r
- Soaring prices are creating transaction fees to increase, indicating more notable SegWit usage on the Bitcoin network.
With the appearance of price hikes beyond almost all crypto assets, the amount of addresses in profit relative to the price they were obtaining is rising.
Nevertheless, remarkable cryptocurrencies are faring much better than others. The skyrocketing rates are also influencing the transaction charges.
More expensive fees on the Bitcoin network seem to be promoting greater SegWit adoption. Roughly two-thirds of payments now use the block space-saving transaction format.
Largest Crypto Investors Sitting in Profit
Approximately 92% of all bitcoin currently remaining in wallets was acquired at a lower price than the current market price.
Any digital assets outperforming Bitcoin are those that went live after the 2017 craze, and they too have a large number of addresses in profit. LINK, VET, CRO, and SNX have all interested waves of contemplative interest during 2020, resulting in a breach of their previous all-time highs.
According to data from IntoTheBlock, 95% of ChainLink and Crypto.com addresses are currently in profit.
Meanwhile, 94% of VeChain addresses acquired their holdings at a lower price point than today.
Finally, having experienced a considerable 2,320% price rise in the last twelve months, most Synthetix Network Token holders are sitting pretty.
At the other end of the spectrum are crypto assets that were hardest hit by the 2018 bear market. Just 77% of Ethereum addresses, for example, are in profit. Faring even worse are Litecoin, Dash, and Cardano, with 55%, 56%, and 57% of wallets now in profit, respectively.
Rising Prices Prompts Greater SegWit Adoption
As mentioned previously, bullish price action is also causing some transaction fee issues. Perhaps the worst hit is Ethereum. BeInCrypto reported on the rising gas prices last month. The surging interest in DeFi has meant a spike in network usage.
Bitcoin is no outlier in this event. According to data from BitInfoCharts, the average transaction fee in early August hit almost $6.50. The increasing prices not only make each satoshi used for payments more valuable but also appears to attract greater speculative interest.
The increasing numbers of transactions make block space particularly valuable.
While Ethereum waits on a much-anticipated upgrade that aims to address the network’s transaction capacity, the current scenario is drawing greater SegWit use on the Bitcoin network.
SegWit, or Segregated Witness, was attached to the network in 2017 as a soft fork. It reduces the amount of transaction data stored on the blockchain. This effectively increases the chain’s capacity.
Lately, BeInCrypto reported that $500 million worth of transaction fees had been needlessly spent since SegWit’s launch. Some network users have wised up to this waste, and consequently, SegWit usage is now growing.
Investor and entrepreneur Alistair Milne agree with this assessment, citing data from transactionfee.info. At around 65%, the number of transactions implementing the scaling solution now sits at an all-time high.
Milne argues that companies not using SegWit will eventually be “forced to enable” it. Mentioning Blockchain.com as an example, he states that not making efforts to reduce the block space used per transaction may spell the end for heavy users like exchanges.
Accelerating the Envelope
SegWit reportedly benefits the complete network. Reduced demand for block space results in lower average fees across the web.
Milne lately put up a 0.1 BTC bounty for creating a bot that would post “When SegWit?” as a reply to every tweet for companies not using SegWit transactions.