The blockchain data firm Glassnode and crypto focused investment firm Ark Invest have introduced a novel economic metrics model for Bitcoin.
This model called ‘Cointime’ establishes a custom suite of analysis tools and 30+ new network metrics with improved pricing models and valuations.
According to Glassnode, the proposed framework – Cointime Economics is based on coinblock, a fundamental unit of the Bitcoin network, and dimension of coin supply.
It separates coin supply into two regions, Active and Vaulted, which essentially sets the base for this new economic model.
While Cointime provides tools to account for lost and inactive supply of Bitcoin, it helps the model to compute inflation rates, stock-to-flow ratios and velocity which all describe Bitcoin’s supply-demand balance.
Cointime further enhances valuation models like MVRV (market value to realized value) while introducing an Active Value to Investor Value (AVIV) ratio.
“Using the Cointime Economics framework, we establish the True Market Mean, which is a Bitcoin cost basis model,” said Glassnode in the announcement.
The model is discussed thoroughly in the Cointime Economics report, authored by James Check, the Lead Analyst at Glassnode and co-authored by ARK’s Research Associate David Puell.