Blockchain analyst Jamie Coutts says regardless of recent hype and rallies, Bitcoin (BTC) is still significantly undervalued.
The analyst says on the social media platform X that the anticipation of the approval of a spot Bitcoin exchange-traded fund (ETF) doesn’t completely explain BTC’s positive price performance as of late.
Using data from crypto analytics firm CryptoQuant, Coutts suggests that Bitcoin is at all-time highs as far as fundamentals, despite being 40% below its record price.
“According to CT (crypto Twitter) and the media, the only reason Bitcoin is up 150% in the past year is because of pre-ETF launch positioning. But do the fundamentals support current prices?
To gauge the ‘fundamentals’, we can look at various components of Bitcoin network activity. This custom index, incorporating several network adoption metrics, is at an all-time high, yet BTC is still 40% below its peak.
Interestingly, the network activity index didn’t make significant new highs in the last cycle. Now, with novel use cases like inscriptions, Bitcoin’s network fundamentals appear the strongest since the 2016-2017 cycle.
Looking beyond Bitcoin, Coutts says that other layer-1 blockchains are displaying healthy growth, according to their on-chain data metrics.
Coutts cites data from crypto metrics aggregator Artemis that suggests active addresses on proof-of-stake (PoS) chains have been parabolically growing for several years.
“Active Addresses – Proof-of-Stake Blockchains (Ethereum Solana etc)
Daily users expanded by 28% last year to 5.7 million.
Since 2017 user growth has compounded at 66% per annum.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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