Bitcoin 2023 Review: Price Recovery and Ecological Renewal

The year 2023 has been one of both repair and rebirth for Bitcoin. Against the backdrop of an uncertain global economic environment, Bitcoin has shaken off the downturn of 2022 and re-entered an upward trajectory. At the same time, the rise of the Ordinals protocol has brought new vitality to the Bitcoin ecosystem.

This article will review the development of Bitcoin in 2023 from four dimensions: trading market, on-chain data, mining development, and application ecosystem.

The trading market performs brilliantly

• The annual price increase reached 158.06%, rising from $16,500 to over $42,700.
• The upward trend is clear, with low volatility, and the average daily fluctuation is only 0.29%.
• 87.76% of the chips are in a profitable state, much better than last year's level.
• Long-term holders have a higher profitability level than short-term holders.

New Characteristics of On-Chain Data Presentation

• The number of active addresses increased slightly by 3.51%, reaching 948,700.
• The number of small-value addresses continues to grow, with addresses holding less than 1BTC accounting for 97.24%.
• The holding period of coins shows a long-term trend, with the proportion of coins held for 2-3 years increasing by 6.7 percentage points.
• The number of transactions increased significantly by 63%, but the total transaction amount decreased by 2547%.
• Transaction fees surged by 367.88%, reaching 641 million USD

Steady Progress in Mining Development

• Total mining revenue for the year is $9.849 billion, with a monthly revenue of $1.158 billion in November.
• Mining difficulty increased by 90.35%, total network hash rate increased by 106.27%
• The unit hash rate yield increased by 85.21%, making the overall mining revenue considerable.

The application ecosystem has significantly expanded

• The total number of Ordinals inscriptions exceeds 49.46 million, and BRC-20 has become a new growth point.
• Bitcoin DeFi TVL increased by 211.46%, reaching 299 million USD
• The share of the Lightning Network decreased from 87.90% to 70.95%, indicating a clear trend towards ecological diversification.

Overall, in 2023, Bitcoin showed new vitality in its ecosystem while recovering in price. With the upcoming halving next year, Bitcoin is expected to continue its upward trend, and further development of the ecosystem is worth looking forward to.