Bitcoin had a challenging end to 2022, but it bounced back in the first quarter, achieving impressive gains of 70%.
The core network had a bullish outlook, which was reflected in the broader market recovery. In Q1, Bitcoin surpassed 800 million transactions, amounting to over $107 trillion, which is a remarkable achievement for a network that has only existed since 2008.
- Despite the bear market, active addresses on the Bitcoin network have consistently increased.
- The number of entities holding less than 10 BTC has also risen to 17% of the total supply.
- The Taproot soft fork, which came into effect last November, enabled the emergence of Ordinals and BRC-20 tokens on Bitcoin. Although controversial, the adoption and utilization of Taproot has significantly increased.
- The increasing transaction count is expected to generate more revenue for miners in the form of transaction fees.
- An increase in total transaction fees and the percentage of miner revenue from fees demonstrates the sustainable security model of Bitcoin.
- The network hash rate is hovering near all-time highs after reaching a record level of 400 Eh/s, which is a much-needed boost to the mining sector.
- The Lightning Network capacity of Bitcoin has also surged beyond $50 million, with LN adoption gaining momentum in emerging markets such as South America and Africa through the LN mobile payment application Strike.
- Bitcoin has outperformed most assets in Q1, indicating its growing appeal as a digital store of value, with its correlation with gold prices increasing from -0.3 to 0.9.