Bitcoin
Bitcoin on-chain activity slows, price movement is slow
Activity on Bitcoin (Bitcoin) is approaching all-time lows, with traders significantly slowing down transactions in the two months since Bitcoin reached a new all-time high price.
Insights from data analytics company Santiment to reveal a slowdown in the Bitcoin network’s on-chain activity in recent months, painting a nuanced picture of the cryptocurrency’s current state.
In a May 11 update on X, Santiment highlighted that network activity on Bitcoin the network is at its lowest since 2019. This observation stems from a visible downward trend in several metrics, including transaction volume, daily active addresses, and whale transaction counts.
According to Santiment, Bitcoin’s on-chain transaction volumes are approaching their lowest level in 10 years, while the number of daily active addresses is at its lowest level since January 2019.
Additionally, data from the analytics firm shows that whale transactions, typically those worth more than $100,000, have slowed considerably, reflecting levels last seen in December 2018.
While the decline in on-chain activity may seem alarming at first glance, analysts at Santiment have suggested that it may not be directly correlated with BTC’s impending price. dropsas witnessed in recent weeks.
Instead, they attribute the decline to “crowd fear and indecision” among traders, highlighting the intricate link between on-chain activity and market sentiment.
Despite these challenges, the price of Bitcoin is relatively stable at the time of writing, hovering just above $61,000 with a slight increase of 0.1% in the last day.
24-hour Bitcoin price chart | Source: CoinGecko
The coin recorded a 24-hour trading volume of $12.67 billion, more than 37% lower than the previous day.
Over the course of seven days, Bitcoin’s price fell 4.6%, meaning it underperformed the global crypto market, which fell 4.2%, according to data from CoinGecko.
As investors navigate this period of consolidation and subdued activity on the network, market sentiment and broader economic factors will likely play a key role in shaping Bitcoin’s trajectory in the coming weeks.
Bitcoin, runes protocol
According to a Dune Analytics dashboard, the Runes protocol on Bitcoin gathered in $135 million in transaction fees on the largest cryptocurrency blockchain.
Network data showed that tokens issued under the standard generated more than 2,100 BTC costs within a week of the halving.
Since then, activity has slowed. According to a Dune analytics dashboard, cited by The Block, Friday, May 10th saw the lowest level of activity on the Runes protocol.