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Metrics Show a Growing Interest in Hodling Cryptocurrencies
Data and intelligence provider, Glassnode released metric insights displaying the hodling momentum on cryptocurrencies, Bitcoin particularly. According to the findings, Glassnode found out that coins exceeding an age of more than 155 days are considered Long Term Holder assets(LTH).
Whenever the digital coins grow or are used in various age bands, the size of color bands expands. Remember that the 155 day period dates back to November 2020.
Therefore, there was a constant growth through November 2020 in the number of coins maturing between one week to six months. As of now, a robust hodling baseline formed between three to six months as the data portrays a swelling indicator.
Additional Hodling Stats
Still, on Glassnode’s findings, the cumulative BTC distribution held by LTHs exhibits an upward trend following a net allocation and spending duration. More data further suggests that LTHs prefer to hold coins allowing them to remain dormant rather than spending to accumulate profits.
Furthermore, the crypto data tracker also examined for any volume changes for coins past the 155-day level. The result showed that digital coins have still been growing higher than the spending rates for the 155+ days since April 8th, 2021.
BTC’s Unspent Transaction Output(UTXO) profits plunged by 90%, signifying that at the $47,000 correction, more than 10% of every UTXO was at losses. Nonetheless, this loss doesn’t seem to affect Long Term Holders even as the UTXO plunge negatively impacts the total coin distribution.
Ethereum translated a different finding from BTC in that LTHs utilized the coins more in decentralized applications and smart contracts rather than holding them.
Today, popular institutional investors such as Tesla leverage digital currencies to obtain more revenue. Miners initiate the hodling action as they save their rewards generated from transaction verifications on a blockchain.
On top of that, novice traders experience a challenge when trading with cryptocurrencies, making hodling a safe and preferable earning method for many. All users need to store their crypto in a digital wallet or exchange, similar to a modern savings account but with a more profitable approach than banks.
Argentina Neutralizes Inflation with Cryptocurrencies
In a bid to offset the ongoing inflation crisis, Argentina set out to invest its funds with the US dollar. This move, however, proved to be ineffective in a way, forcing citizens to shift their focus on cryptocurrencies.
Currently, Argentina is embracing cryptocurrencies as a payment model for goods and services. Crypto trading accounts in the country have also multiplied tenfold since last year.
In a population of approximately 45 million citizens, Argentina has almost 2 million trading accounts, meaning close to 4% of the population are actively trading cryptocurrencies.