Bitcoin on-chain activity insights- Look here
The recent trend of decreasing activity on the Bitcoin on-chain activity network has caught the attention of data analytics firms Sentiment and Dune Analytics, clearing up consequent shifts within the cryptocurrency landscape.
According to Sentiment data, there has been a noticeable decline in on-chain activity over the past few months, marked by reductions in transaction volume, daily active addresses, and whale transaction count. Here’s a breakdown of the key points:
Coming to Bitcoin crypto news Sentiment data reveals over the past few months, an important decline in Bitcoin on-chain activity. This was observed with measures such as transaction volume, daily active addresses, and whale transaction count all experiencing a downtrend.
This decline is especially remarking, back from January 2019 daily active addresses were at their lowest, and with Bitcoin on-chain activity in transaction volumes nearing their lowest level in a decade.
While the decline in Bitcoin on-chain activity may seem to refer to, analysts suggest that it may not directly correlate with impending drops in its price. Despite this, they attribute the decrease to “crowd fear and indecision” among traders, highlighting the complex relationship between on-chain activity and market sentiment.
Despite the decline in on-chain activity, Bitcoin’s price remains relatively stable, hovering around US$61,000 at the time of writing, with a slight increase over the past day.
Bitcoin’s performance
However, the 24-hour trading volume for Bitcoin has decreased notably compared to the previous day, and over the past seven days, Bitcoin has underperformed the global crypto market, experiencing a 4.6% drop in price.
Analysts say and suggest that the crypto market sentiment and broader economic factors will likely play an important role in building Bitcoin’s trajectory in the coming weeks, as investors navigate through this period of consolidation and subdued on-chain activity. Plus, the Runes protocol on Bitcoin, has generated US$135 million in transaction fees on the Bitcoin blockchain. May 10 recording the lowest level of activity on the protocol has been swift recently.
Overall, the insights into the current state of the Bitcoin network, highlight the decrease in on-chain activity and its potential implications for Bitcoin’s price and market sentiment.
