Blockchain & Web3 Weekly Bytes Edition #38

Bitcoin’s MVRV Ratio, New All-Time High & Edge Computing in Web3

November 9, 2024

Hello Fellow Enthusiast,

Welcome to Edition #38 of Blockchain & Web3 Weekly Bytes! This week’s updates capture some standout movements in the blockchain space and beyond:

Tech Spotlight: How edge computing is enhancing Web3 by processing data closer to users—supporting faster, more efficient decentralized applications.
Weekly Highlights: Bitcoin hits a new all-time high, fueled by the latest Federal Reserve rate cut. Detroit steps up by allowing crypto payments for taxes, and BlackRock’s Bitcoin ETF overtakes its gold counterpart in record time.
Affiliate Spotlight: Equip yourself with top resources on GumRoad—crafted to help Web3 professionals stay ready and adaptable.
Chart of the Week: Bitcoin’s MVRV ratio indicates it’s still far from overheated, with room for growth even at these new highs.

🧐 Weekly Trivia

Which of the following countries recently announced plans to establish a fully decentralized national digital currency?

A) Norway
B) India
C) Brazil
D) Nigeria

*Find the answer at the end of this newsletter.

🌟 Tech Spotlight – Edge Computing in Web3

Edge computing is starting to play a quiet but powerful role in Web3, making decentralized applications faster and more secure by processing data closer to where it's created. Think of it as localizing the computing process — instead of relying on far-off servers, edge computing leverages nearby devices and nodes to handle tasks, reducing delays and boosting performance.

Why This Matters

In traditional models, data travels to centralized servers, often located far from the user, which creates lag — a noticeable delay between request and response. This can be a significant drawback for Web3 applications, where speed and privacy are top priorities. Edge computing solves this by distributing data processing across local nodes and devices, which means faster load times and less data moving across networks.

Real-World Utility

A practical example of edge computing is in self-driving cars, which analyze data on the spot, enabling real-time decisions without relying on distant cloud servers. In Web3, a similar approach is helping decentralized finance (DeFi) platforms manage transaction data locally, resulting in near-instant responses. This means smoother and more secure interactions for users — a significant advantage for financial applications.

Future Path

As Web3 expands, edge computing emerges as a critical driver in the development of decentralized applications. By processing data locally, edge computing significantly boosts speed and privacy, empowering Web3 technology to effectively address a diverse array of needs. This transition is set to unlock new opportunities for Web3 applications, particularly in sectors where low latency and stringent data privacy are imperative.

📰 This Week’s Blockchain and Web3 Highlights

Fed Slashes Rates as Bitcoin Soars: With the Federal Reserve lowering interest rates once more, Bitcoin’s price reaches new heights, strengthening its appeal as an alternative asset.

Detroit to Accept Crypto for Taxes and Fees: Detroit is set to become the largest U.S. city allowing cryptocurrency for tax payments, joining states like Colorado, Utah, and Louisiana.

JP Morgan’s Blockchain Platform Gets a New Name: JP Morgan has rebranded its Onyx blockchain platform to “Kinexys” and plans to expand into on-chain foreign exchange services.

BlackRock’s Bitcoin ETF Overtakes Gold Fund: Following a record week, BlackRock’s iShares Bitcoin ETF has surpassed its gold fund, reflecting a growing preference for digital assets.

Coinbase CEO Sees Crypto’s Policy Future as Secure: After recent U.S. elections, Coinbase’s Brian Armstrong is optimistic about crypto’s regulatory landscape, with growing support from newly elected officials.

Crypto Market Cap Could Triple by 2026: Analysts at Standard Chartered predict a possible tripling of the global crypto market cap by 2026 if Republicans gain control of Congress.

Tether Expands into Oil Trade with $45M Deal: Tether’s investment arm has financed a $45 million Middle Eastern crude oil deal, marking its entry into the trade finance industry.

🔗 Affiliate Spotlight: GumRoad

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Why Choose GumRoad?

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Ready to find your next go-to resource? Explore GumRoad and see what’s available for you today!

😂 A Little Blockchain Humor Break 🤣

Source: Naiive

📊 Chart of the Week: Bitcoin's MVRV Ratio and What It Means for Price Potential

Bitcoin recently hit a new all-time high, but its MVRV (Market Value to Realized Value) ratio shows the price is still far from overvalued. Historically, Bitcoin's MVRV ratio tends to approach 4-5 during market peaks. It's well below these levels, indicating there may still be room for growth before reaching any overheated territory.

🔍 Key Takeaways:

Current Position: Bitcoin's MVRV ratio remains under historical peak levels, suggesting it's not yet in a speculative bubble phase.
Cost Basis Comparison: The price remains close to the average purchase cost for most traders, reflecting stable interest rather than hype-driven buying.
Growth Potential: This data hints that Bitcoin could still have upward momentum without entering overvaluation territory.

This chart provides a thoughtful perspective on Bitcoin's price action, balancing its recent high with the MVRV ratio's insights to give a clearer picture of what could come next.

Source: CryptoQuant

That wraps up Edition #38 of Blockchain & Web3 Weekly Bytes! This week, we’ve covered Bitcoin’s fresh all-time high without the typical overheated signals, the potential of edge computing to boost Web3 applications, and Detroit stepping into crypto-friendly territory. These developments show how blockchain is evolving with both resilience and adaptability.

Trivia Answer: C) Brazil recently announced plans to launch a fully decentralized national digital currency. This move could set new standards in digital finance.

Thank you for staying connected with Blockchain & Web3 Insights. I’ll return next week with more updates, insights, and practical takes to keep you informed. See you then!

Best regards,
Ajay Tomar

Disclaimer:

Content in this newsletter is for educational and informational purposes only and is not intended as financial, tax, or legal advice. Always do your research and consult with a professional before making financial decisions. As a solopreneur, I may earn commissions from affiliate links in this newsletter at no extra cost to you. This support helps me bring you valuable content. I only endorse products I trust and believe could benefit you.