Why Bitcoin’s Supply Crunch Could Send LF Labs Token to $1

Imagine the net supply of Bitcoin as water in a tank: when many people take a scoop of water out then the tap is dripping water in, the water level will decrease. Glassnode has indicated that long-term holders and even the so-called shrimp (smaller players) are gobbling coins before miners can mint them, constraining the supply side.

Source: https://x.com/glassnode/status/1943327820303716580 

As more mining operations occur than the consistent 6.25 BTC per block (approximately 900 BTC per day) subsidy awarded to the miner of the block, there are fewer coins for circulation. In the past, this scarcity has acted like rocket fuel for prices, creating upward pressure as buyers compete for a shrinking pool of coins.

Simply put, it is an indicator of a maturing market: hodlers feel their power, sell-side taps out, and it is ready to jump bullish even further, particularly as issuance continues to decline and approach the next halving.

Source: https://x.com/glassnode/status/1943291241720136070

Spot CVD has been falling off in the previous weeks as futures CVD rises, indicating a jump driven by leverage with very little spot demand. The squeeze may be reversed when margin calls start raining down, but as long as actual spot flows come back, the recovery remains vulnerable.

Turning Scarcity into Value with LF Labs

With a tighter net supply of Bitcoins and scarcity becoming the leading factor, LF Labs is in a position to convert that energy into real use cases-- and returns to those tokens. With the help of its Crypto Payment PoS devices, merchants are now able to accept Crypto in the form of Bitcoin, Ethereum, and LF tokens at checkout and turn their hoarded digital currency into everyday purchasing power, including cafes in Dubai and boutiques in Europe. The barrier is further reduced through the self-custodial LF Wallet that provides an easy experience of dollar swaps, staking, and portfolio tracking, all in a single place.

With a valuation of $0.0009212 at the time of writing, a market cap of 2.79 million, and an approximate circulating supply of 2.99 billion, LF is perched on the brink of potential that is going to reach massive proportions. The actual-world-translated usage directs the supply pressure with tokenomics toward the production of on-chain demand, making both the supply more scarce and the floor price higher.

In the future, the LF Labs indicates the improved features of smart-contract wallets, Lightning Network support of near-instant settlements, and an accelerator program that will add hundreds of new merchants. With utilization on-chain continuing to increase, and the supply forces moving towards ever more deflationary territories, a move to possibly catch the price on the auction block near the $1 mark per LF token is not only just speculation, and more about a visible reality of the reality that the supply is limited, and demand is higher than the available offerings. Watch out for LF Labs on X to keep pace with the developments of the ecosystem as it rolls out.



Related: ‘Bears in Disbelief’ — Over $1B in Crypto Shorts Liquidated as Bitcoin Surges to New Highs