16 Charts to Understand Bitcoin This Year: Over 140 Million New Addresses, Average Profit Chips Proportion is 60.50%

In 2022, influenced by the global liquidity tightening, Bitcoin ended the bull market of the previous two years and entered a turbulent downturn bear market. The price of Bitcoin fell below $20,000, leading to issues with major exchanges and DeFi protocols, severely impacting market confidence. In addition to these surface phenomena, profound changes occurred in Bitcoin in several aspects.

This article provides a comprehensive review of the data changes in Bitcoin this year across five aspects: trading market, on-chain fundamentals, chip and address structure, mining, and applicability, laying the analytical foundation for the outlook for the coming year.

Key Points

1. Trading Market

The price of 1)BTC has fallen by more than 65% throughout the year, showing a "stair-step" decline pattern.

The exchange's BTC supply has decreased by 533,700 coins, a drop of approximately 20.20%.

3)10 After mid-October, the market estimates that the leverage ratio will drop from a maximum of 40.47% to around 28.05%.

4. institution's BTC holdings have decreased moderately by 4.54%, and the off-exchange premium rate has dropped to -44%.

2. On-chain fundamentals

The number of on-chain Bitcoin users at 1) has明显下降 compared to last year, but remains relatively stable amid market fluctuations.

In 2), the total number of transactions for the year was 88.99 million, a decrease of 4.13% year-on-year. The total transaction amount was approximately 12.56 billion BTC, an increase of 36.37% year-on-year.

A total of approximately $137 million in on-chain transaction fees has accumulated, with an average of about $1.53 per transaction, showing a downward trend.

3. Chip and Address Structure

The average proportion of profitable chips is 60.50%, while 40% of the chips are in a state of loss throughout the year.

The "whale" Address chip concentration has gone through a "concentration-dispersion" process. Generally, user assets show a trend of accelerated small-scale and polarization in holding periods.

4. Mining

The average daily computing power of ) is approximately 218.5 EH/s, with an annual increase of 11.21%, showing a moderate rise.

The mining profit margins are under pressure, with daily mining earnings per T of computing power dropping to $0.06, a decrease of 76% for the year.

5. Applicability

The number of lightning network channels decreased by 18.53%, the circulation of WBTC decreased by 24.48%, indicating a reduction in connectivity with other ecosystems.

01. The price of coins has plummeted, and the inventory of exchanges has decreased.

In 2022, the BTC price fell from $47,700 to $16,600, a decline of about 65.09%. The year experienced 6 instances of daily declines exceeding 10% termed as "crashes", with 2 occurrences in November alone. The price showed a "stair-step" decline, with significant drops typically completed within the day.

![16 charts to understand Bitcoin this year: over 140 million new Addresses, average profit chip ratio is 60.50%])https://img-cdn.gateio.im/webp-social/moments-d8ef6b07df256edb63556e111c53239e.webp)

The exchange's BTC supply decreased from 2.6423 million coins to 2.1086 million coins, a drop of 20.20%. After the FTX incident, the supply rapidly declined, decreasing by approximately 240,000 BTC within 11 days.

![16 images to understand Bitcoin this year: over 140 million new addresses, average profit chip ratio is 60.50%])https://img-cdn.gateio.im/webp-social/moments-a4122484ad7b1496f606f7cc43c6b0b1.webp)

The market estimated that the leverage ratio first rose and then fell, reaching a peak of 40.47% on October 11, and then dropping to 28.05% a month later, after which it basically did not exceed 30%.

![16 charts to understand Bitcoin this year: over 140 million new addresses, the average proportion of profitable chips is 60.50%])https://img-cdn.gateio.im/webp-social/moments-e22f6be6e67fb2338ac0c02a7ecb5dc4.webp)

Institutional BTC holdings have moderately decreased by 4.54%, and the off-exchange premium rate has dropped from -20.74% in January to -44.12% in December, a decline of 112.73%.

02, User Activity Decline, Trading Volume Growth

In 2022, the average monthly cumulative active Addresses of Bitcoin was 27.82 million, a year-on-year decrease of 7.67%. The daily average active Addresses was 916,500, a year-on-year decrease of 7.70%. New Addresses totaled 141 million, a year-on-year decrease of 9.50%.

The total number of transactions reached 88.99 million, a year-on-year decrease of 4.13%. However, the cumulative transaction amount was 1.256 billion BTC, a year-on-year increase of 36.37%. The average monthly transaction amount in the first half of the year was 135 million BTC, significantly higher than the 86.96 million BTC in the second half.

The average daily transaction fee is $1.53, showing a downward trend. The total transaction fees amount to $137 million, also showing a downward trend. The fees were highest in May and lowest in October.

03, Changes in Chip Structure, Growth of Small Addresses

In 2022, the average share of profitable Bitcoin chips was 60.50%, showing a downward trend throughout the year, decreasing from 74.54% to 55.77%. From November 8 to 29, the share of profitable chips was almost always below 50%.

The total balance proportion of the top 100 addresses first increased and then decreased, rising from 15.03% to 15.81%, and then dropping to 14.82%.

The number of small addresses has grown significantly, with a notable increase in addresses below 10 BTC. The proportion of coins held for 1-2 years has increased the most, reaching 20.37%. There has also been growth in short-term and ultra-long-term holding addresses.

04. Continuous growth of computing power, significant decrease in unit revenue

Throughout the year, the BTC mining difficulty was increased 15 times and decreased 10 times, with an overall greater increase. On October 10th, it was raised by a maximum of 13.55%, and on December 6th, it was reduced by a maximum of 7.32%.

Average daily computing power 218.5 EH/s, annual increase 11.21%. Highest 316.2 EH/s, lowest 160.3 EH/s. Estimated annual electricity consumption 113.83 TW/h.

The daily mining revenue per T of computing power has dropped from $0.25 to $0.06, a decrease of 76%. Since September, it has remained below $0.1.

Miner Position Index ( MPI ) average -0.52, with relatively low selling pressure. However, there are peaks in selling pressure at the end of March, beginning of April, mid-June, and mid-November.

05, Lightning Network and WBTC Decline

The number of Lightning Network channels decreased from 83,000 to 67,700, a drop of 18.53%. It declined rapidly after mid-October. The funding capacity increased by 46.19% for the year, but saw a decline after October 25.

The total amount of WBTC first rose and then fell, increasing from 258,100 coins to 285,000 coins, and then dropping to 194,900 coins, with an annual decline of 24.48%. In late November, the WBTC/BTC ratio temporarily decoupled.