Bitcoin’s (BTC) network is experiencing a dramatic decrease in activity, with traders noticeably reducing their transaction pace in the past two months since the cryptocurrency hit its record-breaking peak.
The hidden patterns within the world of cryptocurrency, data analytics firm Santiment has shed light on a surprising trend: a decrease in on-chain activity on the Bitcoin network.
Delving deeper into the numbers, their latest report on May 11th revealed that this decline is the most significant since 2019. With a sharp decline in transaction volume, daily active addresses, and even whale transaction count, the current state of Bitcoin is more complex than meets the eye.
The latest report from Santiment reveals that Bitcoin’s on-chain transaction volumes are plummeting to their lowest point in a decade. Surprisingly, the number of active addresses has also hit a record low, comparable to figures from January 2019.
The analytics firm’s data exposes a significant decrease in whale transactions, those hefty deals worth over $100,000. This trend echoes levels not seen since December 2018.
According to the experts at Santiment, this may not necessarily spell doom for BTC prices as we’ve seen in recent weeks. Instead, they point to “crowd fear and indecision” among traders as the culprit for the decline, shedding light on the complex connection between on-chain activity and market sentiment.
Exclusive: Bitcoin falls from $66,000, but defiant CEO predicts 300% surge
Unfazed by the obstacles it faced, Bitcoin stood strong with a steady price of over $61,000, showing a mere 0.1% rise in the last 24 hours. However, its 24-hour trading volume of $12.67 billion was a significant 37% drop from the day before.
In the past week, Bitcoin experienced a 4.6% decrease, falling short of the overall crypto market’s 4.2% decline according to CoinGecko’s data.
As investors tread through this era of consolidation and lackluster on-chain activity, the ebb and flow of market sentiment and larger economic forces will undoubtedly wield considerable influence over Bitcoin’s path in the weeks ahead.
Bitcoin, Runes protocol
In just one week after the highly anticipated halving event, this revolutionary runes protocol on Bitcoin generated a jaw-dropping $135 million in transaction fees on the largest blockchain. With over 2,100 BTC costs recorded, it’s no surprise that the crypto community was buzzing with excitement.
However, as with any rollercoaster ride, the initial thrill eventually slowed down. The latest data from a Dune Analytics dashboard, as reported by The Block, reveals that Friday, May 10 marked a dip in activity for the Runes protocol.