A venture capitalist from New York suggests, Bitcoin and Ethereum are "fundamentally oversold"

Chris Burniske, a venture capitalist from New York and author of the best-selling book "criptoassets" believes that the current underlying status of Bitcoin (BTC) and Ethereum (ETH) may be the best investment in the ecosystem.

According to the fundamental analysis of the Burniske market, both the BTC and the ETH have grown much lower than any decrease in key key indicators. The co-founder of the New York company Venture Capital, Placeholder, says that the encrypted assets can be assessed fundamentally by measuring the supply and demand indicators such as hash rates, daily transactions, the estimated daily value of transactions and unique addresses daily or the total daily gas in use.

Adds

"The fundamentals of quality cryptographic networks are down compared to prices, and significantly, "

Burniske profiles in a Middle post, three reasons why he believes that the fundamentals of Bitcoin and the foundations of Ethereum are stronger than prices suggest.

Hash Rates

Compared to when they were at their peak, the hash rate for BTC and ETH is higher now. Burniske warns that, even with this fundamental price of supply, which is currently outperforming, it is a delayed indicator. He elaborates:

"Both the Bitcoin and the Ethereum hash rates are on negative slopes that require us to observe them closely. It would be useful to consider the number of nodes that support the network and the miners' income for both networks (transaction fees + subsidy by block) ".

Daily transactions

In particular, while the overall value of the network of both tokens has significantly decreased, the number of daily transactions has been marginally stable. He illustrated the same with two graphs in his post:

He states:

"From the peak, the network values ​​of Bitcoin and Ethereum are down respectively by 81% and 93%, while the daily number of transactions is only down by 41% and 52% ".

Transaction value and Ethereum gas used

Burniske points out that even with ETH losing its network value by 93% from its peak, the use of gas shows that the demand for its native functionality has dropped only 7%. He deduces:

"Developers and consumers who use Ethereum's smart contracts continue largely unabated."

On the other hand, Bitcoin saw its daily value of transactions decrease by 74%, more in line with the decrease in the value of the network of 81%.

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