On-chain data confirm positive market momentum

March on-chain metric dynamics confirmed the continuation of the cryptocurrency market’s recovery, according to ForkLog’s analytical report.

For the month, the MVRV Z-Score indicator for Bitcoin reached 0.6, the highest since May 2022. The metric last showed such values prior to the Terra collapse.

The gradual move away from the green oversold zone indicates a positive market dynamic.

The number of “small” addresses—with a balance of ≥0.01 BTC—rose to record highs. This followed a dip in late February–early March, which saw Bitcoin test the $20,000 level.

A similar dynamic was observed in other segments of retail addresses. For example, the number with balances of ≥1 BTC has risen by 1.3% since the beginning of the year.

These data may indicate a gradual rise in the number of new crypto investors and their desire to accumulate as much digital gold as possible amid turbulence in the world of traditional finance.

The Liveliness indicator, which had been downward through March, confirmed the willingness of large players to hold Bitcoin and their belief in the asset’s prospects.

The Ethereum network since the activation of EIP-1559 has burned more than 3 million ETH. Of these, more than 92,000 ETH were burned in March, compared with around 85,000 ETH in February. The pace of ETH being removed from circulation has accelerated for the third month running, driven largely by the market rebound.

In March the number of Ethereum validators rose by 3.5%, to 570,653. The amount of assets staked exceeded 18 million ETH.

Analysts at Glassnode say Bitcoin investors are confident the uptrend will continue. Regulatory issues at Binance did not affect hodler sentiment.