Bitcoin Analyst Claims Bitcoin is Undervalued Despite Recent Rallies
A blockchain analyst named Jamie Coutts believes that Bitcoin (BTC) is still significantly undervalued, even with the recent hype and price rallies. According to Coutts, the anticipation of a spot Bitcoin exchange-traded fund (ETF) approval does not fully explain BTC’s positive performance. He refers to data from crypto analytics firm CryptoQuant to support his claim that Bitcoin’s fundamentals are at all-time highs, despite being 40% below its peak price.
Coutts highlights that Bitcoin’s network activity index, which incorporates various network adoption metrics, is currently at its highest level ever. This indicates that Bitcoin’s network fundamentals are the strongest they have been since the 2016-2017 cycle. Additionally, Coutts mentions that other layer-1 blockchains are experiencing healthy growth based on their on-chain data metrics.
Growth of Proof-of-Stake Blockchains
According to data from crypto metrics aggregator Artemis, active addresses on proof-of-stake (PoS) chains have been growing exponentially for several years. In the past year alone, daily users on these chains increased by 28% to reach 5.7 million. Since 2017, user growth has compounded at a rate of 66% per annum.
Hot Take: Bitcoin’s Strong Fundamentals and Growing User Base
Despite recent price rallies and speculation surrounding a potential ETF approval, blockchain analyst Jamie Coutts argues that Bitcoin is still undervalued. He points to Bitcoin’s network activity index, which is currently at an all-time high, as evidence of its strong fundamentals. Additionally, other layer-1 blockchains are experiencing healthy growth in terms of active addresses. This suggests that the cryptocurrency market as a whole is expanding beyond Bitcoin. With growing user bases and increasing adoption, the future looks promising for both Bitcoin and other blockchain projects.
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