Bitcoin Second Quarter – Q2 Report Released

Formal verification in partnerships with Glassnode, a cryptocurrency analytics firm releases second-quarter - Q2 Bitcoin report.

By · Jul 22, 2020 . 7min read


Formal verification in partnerships with Glassnode, a cryptocurrency analytics firm releases Bitcoin second-quarter – Q2 report. In this report, it attempts to show various metrics like daily economic throughput, Bitcoin network’s liveliness, hash rate and a few other parameters.

This Q2 report encapsulates activities from April to June of 2020, providing a good base for the interesting Q1 that includes the historic crash of March 12. In a comprehensive format with colourful charts, Formal Verification presents various metrics showing the health and overall status of the Bitcoin Network.

From the report, the network currently sees approximately $2.1 billion in economic throughput daily. Economic throughput measures the financial bandwidth of a network. Also the transaction year-to-date for Bitcoin for Q2 was 59,530,551. Comparing this with the overall transactions for 2019 which stood at 119,729415, it shows 2020 has seen at least half of the transactions recorded in 2019.

Source: Formal Verification Report

Mining Difficulty

Bitcoin Network which has been experiencing a drop in difficulty level after March 12 crash and the 3rd halvening miners’ reward, saw its biggest difficulty increase in nearly 2 years (+15%) in June. The network’s hash rate has also been climbing steadily just slightly below 1% below the initial level it was 90 days prior to the crash and halvening event.

Source: Formal Verification Report

For Bitcoin Q2 report, the percentage of Bitcoin supply that had not moved in at least 1+ years reached a new ATH (61.6%), beating the previous high of 61.3%
back in January 2016. Additionally, supply that had not moved in more than 5 years has also reached ATH of 22.1%. Collectively, this signifies a steady
growth in its long-term investor base.

Source: Formal Verification Report

Network Liveliness continues to decrease

In Q2 2020, liveliness decreased. Liveliness is an indicator that shows saving behaviour for BTC holders. The lower the liveliness, the more long term holders are in the network. Liveliness has continued to drop since the 2018 Bitcoin price crash to $3,000. Although, liveliness saw a spike during the March 12 crash, it has reversed to its decreasing trend after that.

Bitcoin – Cryptocurrency Exchange Market Indices

Net Flow

The report also shows there are now approximately 2.64 million bitcoins held across cryptocurrency exchange wallets. Q2 saw was more than 3x more outflows for bitcoins across exchanges than flows seen in Q1 of this year.

Source: Formal Verification Report

Exchange Flow Composition

The report also shows the exchange flow composition of Bitcoin across 12 of the biggest cryptocurrency exchanges. Among them, Bitfinex had the largest decline in supply YTD (-71%) and in Q2 (-66%), followed by BitMEX and Bitstamp which both showed similar rates of decline. Binance, Gemini, and OKEX are the only exchanges that have shown a positive change in supply in 2020.

Source: Formal Verification Report

Tokenized Bitcoin continues to grow

With DeFi’s recent boom, and tokenized bitcoins growing across several DeFi platforms especially with Compound’s recent listing of Wrapped Bitcoin, the report shows there are now 15.8k BTC represented on Ethereum.

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