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Best of State of the Network in 2023

Introduction 

In this special edition of the State of the Network, we reflect on a year full of riveting data and crucial events through the lens of the research team’s favorite issues from 2023. In the upcoming year, our commitment remains steadfast: to deliver meticulous, actionable insights that empower your decisions in an ever-evolving digital asset world.

BITCOIN

This year was a remarkable moment in Bitcoin history, seeing a rush of innovation that is hard to match compared to previous years. In this issue, we mapped out the data behind inscriptions and ordinals, taking a look at how that is affecting the Bitcoin network.

No Ordinary Number

ETHEREUM

A Claim in the Ether: Tracking the Soaring Demand for Ethereum Staking

In issue 208, we focused on data in the Ethereum staking ecosystem following the successful launch of staking withdrawals with the  ‘Shapella’ hard fork in April. 

STABLECOINS

Coin Convergence: Piecing Together Common Ownership Patterns Across Major Stablecoins

Issue 222 explored the topic of stablecoin co-ownership using data sourced from Coin Metrics’ ATLAS blockchain explorer. We also showcased how Coin Metrics’ address tags can be used to build rich analyses of on-chain data.

ATLAS

From East to West: The Global Pulse of Stablecoin Transactions

Issue 220 mapped the global distribution of stablecoin transactions, revealing distinct regional preferences for USDC and Tether, and the impact of major industry events on the stablecoin market from January 2022 to July 2023.

DATONOMY

Zooming Out: A datonomy Update

In this issue of Coin Metrics’ State of the Network, we leveraged datonomy™—a classification system for digital assets to zoom out and gauge the ecosystem and its underlying trends from a broader lens.

MARKET DATA

Navigating the Liquidity Landscape: Insights into Digital Asset Markets

In issue 230, we examined trends in trading volume and market data, using Coin Metrics’ datonomy™ to glean insights into market conditions by specific digital asset sectors, while also focusing on both centralized exchanges and decentralized exchanges (DEXs).

NETWORK DATA

Maker’s Dai Dilemma

In issue 205, we honed in on MakerDAO’s Dai—the largest crypto-backed stablecoin by market capitalization. We walked through how Dai is issued, explored its supply trends and evaluated how the stablecoin is being used today.

EXCHANGES

A Glimpse into Coinbase through Coin Metrics’ Data

Issue 225 focused on Coinbase's position as the lead US exchange through the lens of Coin Metrics' market data. We also explored Coinbase's efforts to diversify its revenue streams with various on-chain efforts like staking through the cbETH liquid staking token, and Base, the Ethereum layer-2 blockchain.

DEFI

Evaluation the Market Quality of DeFi Collateral

In this issue of State of the Network, we used a combination of Coin Metrics’ Network Data (DeFi Balance Sheets) and Market Data to assess predominant forms of collateral in DeFi, examining their unique risk characteristics to understand what makes collateral more or less desirable.

MINING

State of the Network’s Q4 2023 Mining Data Special

This issue of State of the Network focused on Bitcoin mining, spotlighting data across the mining ecosystem and in particular combining public mining company disclosures with Coin Metrics’ Mine-Match technology, comparing the efficiency of major operators’ ASIC fleets against the average network-wide efficiency.

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