Bitcoin has been experiencing significant price gains lately, hitting its highest value since June 2022 and breaking through the $28,000 level. However, experts warn that the cryptocurrency is likely to face significant resistance at the $29,000-$30,000 level, and may undergo a number of price corrections before it can surpass this barrier.

According to data compiled by CryptoQuant, the observed Unspent Transaction Output (UTXO) index for the 2-3 year age range suggests that the realized price for this category is $29,700. The UTXO ratio for this age range constitutes 12.64% of the total UTXOs, which indicates that a significant amount of bitcoin held by long-term investors may soon be sold off.

@azcoinnews

This sell-off may be driven by the fact that the realized price for the 2-3 year age range is higher than that of the 6-12 month index, which is $28,200. Whenever there has been a crossover between these two indexes in the past, it has typically resulted in a price correction.

It is important to note that while the UTXO index can provide valuable insights into the behavior of long-term bitcoin holders, it is just one of many factors that can impact the cryptocurrency’s price. Other variables, such as market sentiment, regulatory developments, and adoption rates, can also play a significant role.

Nevertheless, the UTXO data does suggest that bitcoin may face some short-term volatility as long-term holders potentially take profits. It remains to be seen whether the cryptocurrency will be able to break through the $29,000-$30,000 resistance level in the near future, but the data indicates that it may face significant headwinds in doing so.

#Bitcoin #BTC #UTXO #Cryptoquant #azcoinnews

This article was republished from azcoinnews.com

Bitcoin investors and traders are closely watching the market as the digital currency continues its volatile journey. According to data by Glassnode, the UTXO Realized Price Distribution (URPD) shows at which prices the current set of Bitcoin UTXOs were created, providing a valuable insight into the market sentiment.

As of March 20, over 50% of all UTXOs created are profitable, a significant increase from November 21, when the current bottom of this cycle was 23% of all UTXOs in profit. Additionally, 30% of all UTXOs have been bought between $15,500 and $28,000, indicating that various types of cohorts have “bought the dip” at these price levels.

One of the most interesting findings from the data is that the retail cohort, who hold one bitcoin or less, has been the most aggressive during the past four months. This suggests that individual investors are continuing to enter the market and are optimistic about Bitcoin’s future.

Santiment’s latest report reveals that the average returns for long-term hodlers and short-term “new money” in Bitcoin have reached positive territory for the first time in 14 months. The report highlights how this crucial indicator crossover can be used to assess the next bull run in the cryptocurrency market.

CryptoQuant, another data provider, also revealed that the funding rates for open futures contracts in the derivatives market have returned to positive territory after reaching their lowest value since FTX.

The funding rate is an indicator that measures the funding of open futures contracts and translates market sentiment. In general, very negative funding rates signal moments of short squeeze. However, in the last three situations where the rate was very low, there were rapid price reversals, initially driven by spot buying but strongly intensified through the futures market.

While the current funding rate is positive, it remains low, signaling neutrality with a slight supremacy of market optimism among traders of these perpetual contracts. This suggests that traders are not taking strong positions in either direction and are waiting for more clarity in the market before making any major moves.

Overall, the URPD data and funding rates indicate that the Bitcoin market remains volatile and unpredictable. However, the fact that more than 50% of all UTXOs created are profitable suggests that there is still a significant level of optimism among investors and traders. It will be interesting to see how the market evolves in the coming weeks and months as more data becomes available.

#Bitcoin #BTC #UTXO #crypto2023 #azcoinnews

This article was republished from azcoinnews.com

The ADA cryptocurrency
The $ADA cryptocurrency is the native asset of the #cardano blockchain, and it plays a critical role in maintaining and operating the network. Unlike cryptocurrencies like #bitcoin , which primarily serve as a digital store of value, ADA is designed to enable a broader set of functionalities, ranging from facilitating transactions to being staked to secure the network.
Cardano’s consensus mechanism, known as Ouroboros, is a proof-of-stake system, which is fundamentally different from the proof-of-work systems found in cryptocurrencies like Bitcoin. In proof of stake, the creation of new blocks is performed by validators who are chosen based on the number of coins they are willing to “stake” as collateral. Essentially, #ADA holders can participate in staking to help validate transactions, add new blocks to the blockchain, and thereby keep the network secure. In return for staking their ADA, participants receive additional ADA as rewards, creating an incentive for users to hold and stake their coins rather than spending them.
In terms of its economic model, ADA has a capped supply, much like Bitcoin. The maximum supply of ADA is fixed at 45 billion tokens, with a current circulating supply of approximately 35 billion. Transaction fees in the Cardano network are also paid using ADA, and these fees are adjusted algorithmically based on network activity. Additionally, certain network upgrades and functionalities might require users to pay fees or make deposits in ADA, which further integrates the cryptocurrency into the Cardano ecosystem.
ADA can be stored in various types of wallets, including hardware wallets, mobile wallets, and desktop wallets. Cardano offers its official wallet, known as Daedalus, which provides a full copy of the Cardano blockchain and offers enhanced security features. Another option is the Yoroi wallet, which is a lightweight wallet for Cardano that runs as a browser extension.

Cardano development phases
Since its launch, the blockchain has evolved through several phases, each introducing key features. The Byron Era, the initial version of Cardano, began in September 2017. This phase launched the first mainnet, enabling ADA transactions over a federated network using the Ouroboros consensus mechanism.
The Shelley upgrade followed in mid-2020, #decentralizing network consensus. This update transitioned the network to a state where most nodes were operated by the community rather than a centralized entity.
After Shelley, the Goguen era brought further blockchain capabilities through a series of hard forks. In March 2021, the platform added support for native assets through the Mary hard fork. Later, Cardano advanced to the Alonzo phase in 2022, enabling smart contracts for the first time. Concurrently, the project initiated the Plutus Pioneer Program to train over 1,000 interested developers in writing dapps on Cardano.

Cardano consensus and architecture
Cardano features a unique two-layer architecture. The Cardano Settlement Layer (CSL) handles all ADA transactions, while the Cardano Computation Layer (CCL) oversees computational functions, including smart contracts and dapps.
Time on the Cardano blockchain is divided into epochs, each consisting of a series of slots. In each slot, a slot leader is elected to validate transactions and add them to the blockchain. This election is not random but rather is based on the amount of ADA an account holds and has staked.
The election of slot leaders is a key aspect of the Ouroboros protocol. The more ADA an account has staked, the higher the chance that it will be chosen as a slot leader. This system of proportional election aims to ensure a more democratic and decentralized mechanism of transaction validation. Ouroboros also incorporates multi-party computation to ensure that the election of slot leaders is both random and secure, eliminating any predictable patterns that could be exploited.
Security is another focus of the Ouroboros design. The protocol claims to offer provable security, assuming that the majority of ADA staking is controlled by honest nodes.

The e-UTXO model
Cardano employs an Extended Unspent Transaction Output (e-UTXO) model for its ledger, which is a variation of the Unspent Transaction Output (UTXO) model used by Bitcoin. The traditional #UTXO model keeps track of the ownership of tokens based on unspent outputs from previous transactions. In contrast to account-based models (like the one used by Ethereum), where the ledger resembles a state machine, the UTXO model treats each transaction as an atomic operation that consumes certain outputs and produces new ones without affecting other parts of the ledger.
The e-UTXO model extends this basic framework by incorporating some features commonly found in account-based models. Specifically, e-UTXOs can carry additional data fields and can also be subject to more complex conditions specified by smart contracts. In essence, e-UTXOs permit Cardano to integrate complex logic without compromising the benefits of the UTXO model, such as scalability and parallel transaction processing.
Cardano entities
The Cardano team is split across three independent Cardano-centric entities: the Cardano Foundation, Input Output, and Emurgo.
The non-profit Cardano Foundation, based in Zug, Switzerland, oversees and supervises the project. Input Output spearheads research and development as well as delivering protocol upgrades. Emurgo acts as the private investment side of Cardano funding, accelerating projects.
Research-driven approach
Cardano has quite a strong academic foundation. This methodology incorporates a peer-reviewed approach to the network's software architecture and functionalities.
Over the years, the project has been subject to rigorous academic scrutiny and has undergone peer review.  Due to this reason, the project has prioritized transparency in software development, using features substantiated by empirical evidence. Cardano's research team has generated over 100 scholarly papers, discussing topics from distributed systems and programming languages to game theory.
While the research-driven approach has its merits, it has also led to software upgrade delays during its progression.

Blockchain technology, the backbone of cryptocurrencies like #Ethereum and #Bitcoin , operates on distinct architectural models: the Ethereum Virtual Machine (#EVM ) and the Unspent Transaction Output (#UTXO ). Understanding these models is crucial for grasping how different blockchain networks function and their implications.💡Understanding EVM:EVM is the runtime environment for Ethereum's smart contracts. It's a virtual state machine that executes smart contracts, allowing for a wide range of decentralized applications (DApps). EVM's flexibility enables developers to write in various high-level programming languages, which are then converted into bytecode understood by the machine.👍 Advantages of EVM:EVM's ability to execute complex smart contracts makes Ethereum a powerful platform for DApps. This flexibility has spurred innovation in areas like finance (DeFi) and digital art (NFTs).👎 Limitations of EVM:However, EVM faces challenges, particularly in scalability and gas fees. The computation-intensive process can lead to network congestion, increasing transaction costs and impacting performance.💡Exploring UTXO:The UTXO model, used by Bitcoin, treats transactions more like cash exchanges. Each transaction starts with unspent outputs from previous transactions and ends with new unspent outputs. These outputs are then available for future transactions, ensuring a chain of ownership.🙏 Strengths of UTXO:UTXO's primary advantage is its simplicity and enhanced security. It allows for parallel processing of transactions, contributing to network scalability and robustness against double-spending attacks.👎 Drawbacks of UTXO:However, UTXO's design is not natively conducive to complex smart contracts, limiting its use cases compared to EVM-based platforms.🧐 Comparing EVM and UTXO:While EVM emphasizes programmability and complex contract execution, UTXO focuses on transactional efficiency and security. The choice between EVM and UTXO often depends on the application's requirements: EVM for complex decentralized applications and UTXO for straightforward, secure transactions.Conclusion:Both EVM and UTXO offer unique advantages and cater to different needs in the blockchain ecosystem. As the technology evolves, understanding these architectures becomes essential for developers, investors, and enthusiasts looking to navigate the diverse world of blockchain.