Key takeaways: Yearn Finance’s massive spike in price, attention and transactions. PlanB’s stock to flow model goes according to plan after the halving, bitcoin price behaviour, decreasing transactions fees and growing hash rate.
Yearn Finance Transaction Count reaches a New All-Time High
DeFi protocol token Yearn Finance exceeded the value of bitcoin and currently trades at $18,500. The transaction count hit 11.3k, which is a new all-time-high. Moreover, one of the biggest crypto funds Polychain Capital bought $2.1 million worth of Yearn token. The transaction came from an address affiliated with Binance, which has one of the most liquid markets for the YFI. So, the price went up over 120% in the past week.
PlanB’s model is going according to plan
The stock-to-flow model creator PlanB says bitcoin moves like a “Clockwork” after the halving. His famous model that has been proven pretty accurate so far demonstrates that the bitcoin price behaviour after halving in May resembles the events after the previous halving. He also reaffirmed his belief that the model is correct, and BTC will trade between $100,000 and $288,000 by the end of 2021.
Bitcoin transaction fees become cheaper as the mempool clears
Bitcoin transaction fees lowered, as the number of unconfirmed transactions on the mempool has dropped. Currently, the average transaction fee is $6.7.
The spike in the number of unconfirmed transactions in the network’s mempool followed the recent decrease of the network hashrate, causing users to pay more to miners in priority fee to accelerate confirmations. Bitcoin hashrate began decreasing in mid-October, which was related to the seasonal migration of miners in China. Between November 9 and 10, the hashrate grew by 42% and it reduced the transaction fees to a reasonable level.
Bitcoin price crossed $16,000 this week. Since the beginning of the month BTC gained 19%. Despite the extremely bullish sentiment on the market, there are several signs to be cautious of. First of all, as history shows, after any bull run comes a correction and bitcoin might be due for one very soon. There is a bearish divergence on a Relative Strength Index. Furthermore, the Fear and Greed Index demonstrates “Extreme Greed” in the past 3 days, signaling that the asset might get too hot right now.