Bitcoin shortage rises to the highest as illiquid supply reaches 85% in past three months

Bitcoin (BTC) is back on the winning track as it continues to break above the $ 55K level, a scenario that last occurred in May. The leading cryptocurrency is up 2.48% in the past 24 hours to hit $ 55,607 during intraday trading, according to CoinMarketCap.

This price increase is due in part to the shortage in the BTC market. Network analyst Will Clemente explained:

“It is estimated that 38.2% of the BTC supply is lost. 92% of the offer has not moved in at least 30 days. 85% of the offer has not moved in at least 90 days. The scarcity of Bitcoin cannot be overstated. “

Therefore, the supply of illiquid or immobile Bitcoin has skyrocketed and based on market forces, if supply decreases and demand increases, the price is expected to increase.

Clemente acknowledged that the estimation of lost or immobile coins is done by subtracting the liveliness (ratio of days of coins created / destroyed) from 1 and multiplying that value by the circulating supply.

Online services are driving the use of the BTC Lightning network

According to cryptanalysis firm Arcane Research:

“The use of Lightning is moving from being dominated by online services to everyday use. The transition of users with access to Lightning payments to actual use of Lightning is not instantaneous of the same magnitude. However, spending on common-use portfolios doubled in September. “

Arcane Research recognized that the Lightning Network could radically change the business model of content providers in games, video, audio and many more categories by providing a structure where ongoing micro-payments are made.

The capacity of the Bitcoin Lightning network recently breached 3000 BTC for the first time.

This network is a second layer built into the Bitcoin blockchain for off-chain transactions. As a result, micropayment channels are used to scale the blockchain’s ability to transact more efficiently.

Therefore, it is believed that transactions on the Lightning networks are more easily confirmed, cheaper and faster than those processed on the chain or on the main Bitcoin network.

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