Top 5 Signs That Bitcoin Has Strong Fundamentals

Cryptocurrency markets have been in a state of uncertainty for months, with the BTC price hovering around $20,000 and a slew of gloomy headlines about Bitcoin’s impending demise. All of this successfully obscures the core fact of the cryptocurrency market: Bitcoin’s fundamentals are as strong as they were before this.

BeInCrypto examines five indicators in today’s on-chain study to see whether the aforementioned assertion can be proven. All of them have to do with the Bitcoin blockchain’s foundations and are now at all-time highs amid a moment of tremendous anxiety and uncertainty (ATH).

The following are five signs that the Bitcoin network’s foundations are solid:

The Bitcoin network’s hash rate is the fundamental measure of its performance and security. Miners on the network are expected to create an average number of hashes every second.

On April 15, 2021, the 30-day moving average hash rate hit a record high of 166 EH/s.. Coinbase’s previous all-time high was $64,850 at the time (blue circles).

Due to the flight of Chinese miners, the network’s hash rate plummeted significantly. Hash rates on the bitcoin network were down approximately 43% from April’s ATH by the time they hit their lowest point in July of 2021. (red circles).

Hash rates have continuously increased since then, however, and they’re now breaking records on a regular basis. The current average hash rate on the Bitcoin network is 204 EH/s. As a result, despite Bitcoin being trading at roughly $41,500, this represents a 23 percent increase over the previous ATH (green circles).

Lightning Network Capacity is another useful statistic for gauging the level of activity on the Bitcoin network. It measures the quantity of BTC held on the Lightning Network, the second layer of Bitcoin’s blockchain, which is used for transactions. Speeding up and lowering transaction costs are two of its primary goals.

The Lightning Network’s bandwidth tripled from April to November 2021. (green area). During this time span, the BTC price saw a downward trend, reaching a low of $29,900 in the summer and…

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