Bitcoin and Ethereum "are basically oversold," says the venture capitalist of New York

Cryptographic sentiment might be at the bottom, but Bitcoin and Ethereum could now present a sound purchase opportunity according to Chris Burniske's fundamental analysis.

The New York Venture Capitalist and author of the best-selling book '' Cryptoassets believes that the prices of Bitcoin and Ethereum have dropped much lower than any decrease in key key indicators.

"The fundamentals of quality cryptography networks are lower than prices and significantly," says Burniske.

Although there are many conjectures about cryptographic fundamentals, Burniske believes that cryptoassets can be assessed fundamentally by analyzing demand and supply indicators such as hash rates, the number of daily transactions, the estimated daily value of transactions, the addresses only daily used and (for Ethereum) the total daily gas used.

In a Post medium, Burniske outlined three compelling reasons that he believes that the fundamentals of Bitcoin and the foundations of Ethereum are stronger than prices suggest.

Daily transactions

While the network value of Bitcoin and Ethereum continues to flow, the number of daily transactions remained stable.

"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%, says Burniske.

Transaction value and Ethereum gas used

Burniske notes that although Ethereum's network value dropped 93% from its peak, the use of gas shows that demand for its native features has fallen 7%.

"Developers and consumers who use Ethereum's smart contracts continue largely without stopping," he says.

Bitcoin has seen its daily value of transactions decrease by 74%, more in line with the decrease in the value of the network of 81%.

Hash Rates

The hash rates of both Bitcoin and Ethereum are higher now than their peaks.

While this supply-side fundament is currently outpacing prices, Burniske cautions that it is a lagging indicator.

"Both the Bitcoin and the Ethereum hash rates are on negative slopes that require us to closely monitor them.

"It would be nice to see the number of nodes that support the network and the miners' income for both networks (transaction fees + block subsidy).

To learn more about how Chris Burniske analyzes the fundamentals of Bitcoin click here read & # 39; Cryptoassets & # 39 ;.

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