Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>Daily exchange volumes are down from the highs seen in May of 2021</li>
                <li>Activity on the Bitcoin network has been flat to down throughout 2021</li>
            </ul>
    
</div>



<p><meta charset="utf-8">The number of BTC wallet addresses holding 10 or more BTC has been in a downtrend since the end of 2020.</p>



<p>Daily exchange volume has yet to return to levels seen earlier in 2021 as they hover in the $25 billion to $50 billion range.</p>



<p>Active addresses on the Bitcoin network are down from 1.2 million at the beginning of 2021 to 995,000 today.</p>



<p>$120.87 million of long positions have been liquidated over the last 24 hours as a result of today&#8217;s BTC price action.</p>



<h3><strong>Latest in Macro:</strong></h3>



<ul><li>S&amp;P 500: 4,786, -0.10%</li><li>NASDAQ: 15,781, -0.56%</li><li>Gold: $1,805, -0.36%</li><li>WTI Crude Oil: $75.99, +0.56%</li><li>10-Year Treasury: 1.482%, +0.001%</li></ul>



<h3><strong>Latest in Crypto:</strong></h3>



<ul><li>BTC: $47,844, -6.70%</li><li>ETH: $3,831, -6.40%</li><li>ETH/BTC: 0.0800, +0.73%</li><li>BTC.D: 39.95%, -0.27%</li></ul>



<h3>Declining exchange volume</h3>



<p>Daily exchange volume has yet to return to levels seen earlier in 2021 as they hover in the $25 billion to $50 billion range, according to data from <a href="https://www.theblockcrypto.com/data/crypto-markets/spot" target="_blank" rel="noreferrer noopener">The Block</a>.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img decoding="async" loading="lazy" width="911" height="391" src="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png" alt="" class="wp-image-13248" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM.png 911w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM-300x129.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM-768x330.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM-428x184.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM-470x202.png 470w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM-389x167.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-12.35.49-PM-80x34.png 80w" sizes="(max-width: 911px) 100vw, 911px" /><figcaption>Source: The Block</figcaption></figure></div>



<h3>Stagnant activity on the Bitcoin network</h3>



<p>Active addresses on the Bitcoin network are down from 1.2 million at the beginning of 2021 to 995,000 today, according to data from <a href="https://studio.glassnode.com/metrics?a=BTC&amp;category=Network%20Stats&amp;m=addresses.ActiveCount&amp;s=1609179676&amp;u=1640649600&amp;zoom=" target="_blank" rel="noreferrer noopener">Glassnode</a>.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png" alt="" class="wp-image-13252" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1024x576.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-300x169.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-768x432.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-1536x864.png 1536w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-428x241.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-464x261.png 464w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-389x219.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses-80x45.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-active-addresses.png 1800w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Glassnode</figcaption></figure></div>



<p>While institutional interest was a common narrative over 2021, the number of BTC wallet addresses holding 10 or more BTC has been in a downtrend since the end of 2020, according to data from <a href="https://studio.glassnode.com/metrics?a=BTC&amp;category=Addresses&amp;m=addresses.Min10Count&amp;s=1582131388&amp;u=1640649600&amp;zoom=" target="_blank" rel="noreferrer noopener">Glassnode</a>, as smart money took profits into price strength. </p>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png" alt="" class="wp-image-13253" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1024x576.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-300x169.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-768x432.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-1536x864.png 1536w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-428x241.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-464x261.png 464w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-389x219.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10-80x45.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-balance-≥-10.png 1800w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Glassnode</figcaption></figure>



<p>&#8220;&#8230;We are still digesting a large loss of active wallets from China and non-China growth, therefore, [the addition of new wallets needs to be greater than the loss of active wallets from China] to exceed that loss of accounts for the network to re-grow too. Likely a matter of time,&#8221; <a href="https://twitter.com/RaoulGMI/status/1475874111616335872?s=20" target="_blank" rel="noreferrer noopener">wrote</a> Raoul Pal, founder of Global Macro Investor. &#8220;Additionally, I didn’t mention that institutional rebalancing, tax-related selling and hedgies squaring books has also added to year-end weakness. This is more temporary, most likely&#8221;.</p>



<h3>Liquidations</h3>



<p>$120.87 million of long positions have been liquidated over the last 24 hours as a result of today&#8217;s BTC price action, according to data from <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noreferrer noopener">Coinglass</a>.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="410" src="https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png" alt="" class="wp-image-13263" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-5-1024x410.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-5-300x120.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-5-768x308.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-5-428x171.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-5-470x188.png 470w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-5-389x156.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-5-80x32.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-5.png 1248w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Coinglass</figcaption></figure></div>



<p>BTC futures open interest sits at $19.22 billion, according to <a href="https://www.coinglass.com/BitcoinOpenInterest" target="_blank" rel="noreferrer noopener">Coinglass</a>, so there are plenty of long side positions that are yet to be liquidated.</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="420" src="https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png" alt="" class="wp-image-13264" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-6-1024x420.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-6-300x123.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-6-768x315.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-6-428x176.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-6-470x193.png 470w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-6-389x160.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-6-80x33.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-6.png 1218w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Coinglass</figcaption></figure></div>



<h3>NFTs</h3>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="336" src="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png" alt="" class="wp-image-13266" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-1024x336.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-300x98.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-768x252.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-428x140.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-470x154.png 470w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-389x128.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM-80x26.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.35-PM.png 1228w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="350" src="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png" alt="" class="wp-image-13267" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-1024x350.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-300x102.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-768x262.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-428x146.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-470x160.png 470w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-389x133.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM-80x27.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-28-at-4.03.46-PM.png 1198w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



<p>If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.</p>



<hr class="wp-block-separator"/>



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BTC Retreats as Digital Assets Sell Off: Markets Wrap

<div id="highlights-block_1de725d7417625c4c6cf81b9be52b950" class="highlights">
        <ul>
                <li>Bitcoin has seen a lot of ups and downs over the course of 2021</li>
                <li>A BTC short squeeze could be brewing</li>
            </ul>
    
</div>



<p>Coin Metrics released a <a href="https://coinmetrics.substack.com/p/state-of-the-network-issue-134" target="_blank" rel="noreferrer noopener">report</a> highlighting some BTC moments from 2021.</p>



<p>BTC wallets holding non-zero balances continue to notch new highs.</p>



<p>Bitcoin could be setting up for a short-squeeze as stablecoin-margined open interest rises.</p>



<p>Tether and USDC grew from a combined market cap in 2020 of $25 billion to a combined market cap of $117 billion in 2021, according to the Coin Metrics <a href="https://coinmetrics.substack.com/p/state-of-the-network-issue-134" target="_blank" rel="noreferrer noopener">report</a>.</p>



<h3><strong>Latest in Macro:</strong></h3>



<ul>
<li>S&amp;P 500: 4,649, +1.78%</li>



<li>NASDAQ: 15,341, +2.40%</li>



<li>Gold: $1,789, -0.18%</li>



<li>WTI Crude Oil: $71.47, +4.17%</li>



<li>10-Year Treasury: 1.470%, +0.053%</li>
</ul>



<h3><strong>Latest in Crypto:</strong></h3>



<ul>
<li>BTC: $48,667, +2.60%</li>



<li>ETH: $4,017, +1.30%</li>



<li>ETH/BTC: 0.0824, -2.17%</li>



<li>BTC.D: 40.63%, +0.54%</li>
</ul>



<h3>BTC 2021</h3>



<p>BTC opened the year strong with a Q1 rally up to <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noreferrer noopener">$57,500</a> ignited by Tesla&#8217;s <a href="https://coinmetrics.substack.com/p/coin-metrics-state-of-the-network-330" target="_blank" rel="noreferrer noopener">announcement</a> on Feb. 8, 2021, that they had added $1.5 billion worth of BTC to their balance sheet. </p>



<p>Tesla&#8217;s announcement coincided with an increase in the number of wallet addresses with a non-zero balance, according to data from <a href="https://studio.glassnode.com/metrics?a=BTC&amp;category=Distribution&amp;m=addresses.NonZeroCount&amp;modal=loginForm&amp;s=1572363587&amp;u=1640044800&amp;zoom=" target="_blank" rel="noreferrer noopener">Glassnode</a>. As seen in the chart below, the number of people who own BTC is at an all-time high.</p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance-1024x576.png" alt="" class="wp-image-13002" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance-1024x576.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance-300x169.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance-768x432.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance-1536x864.png 1536w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance-428x241.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance-464x261.png 464w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance-389x219.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance-80x45.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/glassnode-studio_bitcoin-number-of-addresses-with-a-non-zero-balance.png 1800w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Glassnode</figcaption></figure></div>


<p>BTC then marched on in Q2 of 2021 as Coinbase, the most widely used exchange in the US to purchase digital assets, <a href="https://news.bitcoin.com/coinbase-ipo-april-14-nasdaq/" target="_blank" rel="noreferrer noopener">went public</a> on April 14. The anticipation of the event led to a rally above $63,000 before breaking trend and retracing below $50,000 in the following weeks.</p>



<p>However, the big decline did not occur until China <a href="https://medium.com/coinmetrics/bitcoin-miners-are-escaping-china-d3937e8f018c" target="_blank" rel="noreferrer noopener">announced</a> it would ban bitcoin mining at the end of May. </p>



<p>&#8220;The Chinese government announced a regulatory crackdown of Bitcoin mining and trading. Although China has &#8216;banned&#8217; Bitcoin several times in the past, this time was different:&nbsp;<a href="https://medium.com/coinmetrics/bitcoin-miners-are-escaping-china-d3937e8f018c" target="_blank" rel="noreferrer noopener">Chinese Bitcoin miners started to shut down</a>&nbsp;and rapidly leave the country in anticipation of regulatory action. The amount of BTC transferred by miners hit a yearly high as some miners moved to sell their holdings and move out of the country.&#8221; reads a <a href="https://coinmetrics.substack.com/p/state-of-the-network-issue-134" target="_blank" rel="noreferrer noopener">Coin Metrics report</a>.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img decoding="async" loading="lazy" width="702" height="407" src="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.16.03-PM.png" alt="" class="wp-image-13004" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.16.03-PM.png 702w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.16.03-PM-300x174.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.16.03-PM-428x248.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.16.03-PM-450x261.png 450w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.16.03-PM-378x219.png 378w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.16.03-PM-80x46.png 80w" sizes="(max-width: 702px) 100vw, 702px" /><figcaption class="wp-element-caption">Source: Coin Metrics</figcaption></figure></div>


<p>Between the mining ban and a highly leveraged market structure, a lot of traders were forced to close their long positions which helped push the price below $<a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noreferrer noopener">35,000</a>.</p>



<p>Futures open interest dropped from $20.73 billion on May 10 to $10.93 billion on May 23, according to data from <a href="https://www.coinglass.com/BitcoinOpenInterest" target="_blank" rel="noreferrer noopener">Coinglass</a>.</p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="382" src="https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-4-1024x382.png" alt="" class="wp-image-13005" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-4-1024x382.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-4-300x112.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-4-768x287.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-4-428x160.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-4-470x175.png 470w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-4-389x145.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-4-80x30.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/bybt_chart-6-4.png 1340w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Coinglass</figcaption></figure></div>


<p>After a long chop sideways in Q3, the launch of a US-based bitcoin futures backed ETF product in <a href="https://cms.blockworks.co/first-bitcoin-strategy-etf-puts-btc-in-overdrive-price-tops-64k-markets-wrap/" target="_blank" rel="noreferrer noopener">October</a> sparked another rally to fresh all-time highs.</p>



<p>The <a href="https://coinmetrics.substack.com/p/state-of-the-network-issue-134" target="_blank" rel="noreferrer noopener">Coin Metrics report</a> continues: &#8220;By October 19th BTC price topped $64K, surpassing Q2’s top and setting a new all-time high. Q4 also ushered in Bitcoin’s biggest upgrade in four years: Taproot. Taproot introduced new scripting possibilities and laid the foundation for new smart contract functionality, while improving Bitcoin’s security and privacy. So far, about&nbsp;<a href="https://txstats.com/dashboard/db/taproot-statistics?orgId=1&amp;from=now-30d&amp;to=now">1.6K BTC has been stored in Taproot P2TR outputs</a>&#8220;.  </p>



<h3>Bitcoin today</h3>



<p>BTC was last trading near $48,650, up ~5.20% on the day, according to data from <a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">Coingecko</a>. Some traders are pointing to the possibility of a short squeeze on the heels of <a href="https://app.laevitas.ch/dashboard" target="_blank" rel="noreferrer noopener">mixed perpetual funding</a> rates and rising stablecoin-margined open interest when compared to flat coin-margined open interest.</p>



<p>@bit_hedge noted on <a href="https://twitter.com/bit_hedge/status/1473268340445618180?s=20" target="_blank" rel="noreferrer noopener">Twitter</a>, &#8220;We&#8217;ve seen this picture before,&#8221; alluding to a similar setup today as the beginning of the end-of-summer rally seen earlier this year. </p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge-1024x576.png" alt="" class="wp-image-13008" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge-1024x576.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge-300x169.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge-768x432.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge-1536x864.png 1536w, https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge-428x241.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge-464x261.png 464w, https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge-389x219.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge-80x45.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/@bit_hedge.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: @bit_hedge</figcaption></figure></div>


<h3>Other key metrics from 2021</h3>



<p>On-chain highlights for BTC, ETH, Tether and USDC over the course of 2021 can be found in the table below:</p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img decoding="async" loading="lazy" width="670" height="467" src="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.42.50-PM.png" alt="" class="wp-image-13009" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.42.50-PM.png 670w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.42.50-PM-300x209.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.42.50-PM-369x257.png 369w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.42.50-PM-374x261.png 374w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.42.50-PM-314x219.png 314w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-12.42.50-PM-80x56.png 80w" sizes="(max-width: 670px) 100vw, 670px" /><figcaption class="wp-element-caption">Source: Coin Metrics </figcaption></figure></div>


<h3>Non-Fungible Tokens (NFTs)</h3>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:</p>


<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="337" src="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.43.50-PM-1024x337.png" alt="" class="wp-image-13014" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.43.50-PM-1024x337.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.43.50-PM-300x99.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.43.50-PM-768x253.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.43.50-PM-428x141.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.43.50-PM-470x155.png 470w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.43.50-PM-389x128.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.43.50-PM-80x26.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.43.50-PM.png 1224w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Top Ethereum Projects</figcaption></figure></div>

<div class="wp-block-image">
<figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="280" src="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.44.04-PM-1024x280.png" alt="" class="wp-image-13015" srcset="https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.44.04-PM-1024x280.png 1024w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.44.04-PM-300x82.png 300w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.44.04-PM-768x210.png 768w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.44.04-PM-428x117.png 428w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.44.04-PM-470x129.png 470w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.44.04-PM-389x106.png 389w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.44.04-PM-80x22.png 80w, https://cms.blockworks.co/wp-content/uploads/2021/12/Screen-Shot-2021-12-21-at-2.44.04-PM.png 1196w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Top Solana Projects </figcaption></figure></div>


<p>If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.</p>



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