Ranked as the 32nd largest cryptocurrency on coinmarketcap, Bitcoin Gold (BTG) has a market capitalization of USD 266 million. BTG was created via a Bitcoin fork in October 2017 in an effort to create egalitarian mining accessible even to those with commodity hardware. To achieve this goal, BTG has elected to switch from Bitcoin’s proof of work (PoW) algorithm from SHA256 to Equihash.
Bitcoin Gold currently has a circulating supply of 17.5 million with maximum supply of 21.0 million BTG. The current price of Bitcoin Gold stands at USD 15.20, a 97% discount to its all-time high (ATH) of USD 539, last reached in October 2017.
BTG Key Developments:
1) LATOKEN lists Bitcoin Gold (Link)
LATOKEN, a major cryptocurrency exchange, has officially announced the listing of the BTG/USDT, BTG/BTC, and BTG/ETH pairs, which will be available on the exchange from August 5, 2019. The BTG listing should enhance liquidity and promote greater awareness of the BTG project.
2) NOWPayments no accepts BTG payments (Link)
NOWPayments, an emerging cryptocurrency payment platform, is now accepting Bitcoin Gold (BTG). The addition of BTG is a great first step in improving the cryptocurrency's retail penetration and establishing a fundamental use case.
3) No BTG for Abra Users in the USA (Link)
According to an official announcement by Abra, a mobile crypto wallet, US users will no longer be able to hold BTG, QTUM, EOS, OMG and SNT after August 29, 2019. The announcement further revealed that after August 29,2019, New York residents will only be able to hold Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) on Abra. This latest announcement comes hot on the heels of similar restrictions by exchanges such as Binance and Bittrex in a crypto-wide, regulatory-driven shift away from the US.
a) Daily adjusted USD transaction value
According to coinmetrics.io, the daily adjusted USD transaction value for BTG stands at USD 0.90 million, which represents a ~7.2% decline from USD 0.97 last week. The transaction count, however, increased slightly, rising 2.0% from 9.9k to 10.1k over the week. The divergence of both transaction metrics points toward lower value transactions dominating on the BTG network.
Note: 1) Line chart represents the adjusted USD transaction value (LHS); 2) Area chart represents transaction count (RHS)
b) Active Addresses
According to coinmetrics.io, active addresses count for BTG stands at 7.0k, which represents a 4.5% rise from 6.7k last week. Mean USD transaction fees fell 9.6% from USD 0.00136 to USD 0.00123. On a longer time frame, the trend is clear - lower transaction fees have coincided with a consistent rise in active addresses.
Note: 1) Line chart represents active address count (LHS); 2) Area chart represents USD mean transaction fees (RHS)
c) NVT Ratio
According to coinmetrics.io, the adjusted NVT ratio for BTG stands at 482x. up from 418x last week. The correlation between BTG valuation (proxied by the NVT) and transaction count is striking - as the chart below shows, the NVT has moved in line with transaction count over the last month or so.
Note: 1) Line chart represents the NVT ratio (LHS); 2) Area chart represents transaction count (RHS)
Though BTG is a project that doesn't get much press beyond being one of the more well-known Bitcoin forks, recent developments have been largely positive, though certainly not game-changing. The regulatory-driven shift away from the US may have an impact, especially with BTG struggling to establish a fundamental use case.
The good news is that on-chain metrics have been positive - transaction activity is rising even though overall transaction value is in decline. But with the NVT already tracking transaction activity, recent positive trends are most likely already priced in.