Bitcoin 2023 Annual Review: Price Increased by 158%, Mining Revenue Reached $9.8 Billion

The year 2023 is a year of both repair and rebirth for Bitcoin. Against the backdrop of global economic uncertainty, Bitcoin has reversed last year's downward trend and entered a steady upward channel. At the same time, the rapid development of the Ordinals protocol has brought new vitality to the Bitcoin ecosystem.

The following reviews the development of Bitcoin in 2023 from four aspects: the trading market, on-chain data, mining, and the application layer.

The trading market performs brilliantly

• The annual coin price increase reached 158.06%, rising from $16,500 to over $42,700.
• 87.76% of the chips are in a profitable state, with long-term holders having a higher profit level than short-term holders.
• The total open interest in the futures market increased by 64.02%, but the leverage ratio decreased.
• Not strongly correlated with traditional financial markets, but there are certain periods of correlation.

New Characteristics of On-Chain Data Presentation

• The average monthly active addresses reached 948,700, a year-on-year increase of 3.51%.
• The proportion of small addresses continues to increase, with 97.24% of addresses holding a balance of less than 1 Bitcoin.
• The total number of transactions surged by 63% to 145 million times, but the total trading volume dropped significantly.
• Transaction fee revenue increased by 367.88% to $641 million

Mining Maintains Growth Momentum

• The total mining revenue for the year is $9.849 billion, with December's fee revenue accounting for 19.26%.
• Mining difficulty increased by 90.35%, total network hash rate increased by 106.27%
• The mining revenue per unit of computing power increased by 85.21%, and the overall mining revenue is substantial.

The application ecosystem presents diversification

• The total number of Ordinals inscriptions exceeds 49.46 million, and BRC-20 has become a new growth point.
• Bitcoin DeFi's TVL increased by 211.46% to $299 million
• The proportion of the Lightning Network has decreased, while new applications are rapidly growing.

Overall, Bitcoin has shown positive changes in multiple aspects in 2023, laying a foundation for future development. With the halving approaching, Bitcoin is expected to continue its upward momentum in 2024, and its application ecosystem is also expected to further flourish.