After the June market crash, Bitcoin saw a dramatic slowdown in its network activity. As a result, network activity has declined significantly. This was to be expected since the market crash in June caused a surge of digital assets. The lull in activity has led to various metrics returning to normal territory, and daily mining revenues have remained drowsy.
Network Activity slows
There was an immediate rush to exit bitcoin after its price crashed to $17600. The result was a huge increase in network activity. The average volume of transactions had risen from $18,000 up to $37,000 in the past week due to volatility. These moves were mostly triggered by fears that cryptocurrency’s price would fall further.
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As bitcoin’s price stabilized, however, normal network activity began to resume. You can see this in the weekly average transaction value, which fell by close to 50% and returned to $18,000. On-chain activity is now so low it can be called a hibernation.
The number of transactions per day through the network has also fallen as stability returned to the market. The average transaction volume for the last week was 252,382, but it now stands at 242,737, a drop of -3.82%.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Similar results can be seen for total daily transaction volume. Although investors scrambled desperately to get out of their positions, daily transaction volume had increased to over $9 billion. This week’s value of bitcoin has fallen to $4.4billion. That is a 51.75% decrease from previous weeks.
Bitcoin miners take hits
Bitcoin miners are one of the most affected by market changes. For the past few weeks, daily revenues from miners have been recorded. It was down significantly by June and no signs of improvement are visible.
Daily revenues reached $18.3million per day in the previous week. There has been little change over the past week. The daily revenue of miners rose by 2.02%, to $18.69 Million. However, the fees accounted for 0.7%.
BTC hashrate declines | Source: Arcane Research
The same is true for hashrate. It has taken a dip as well. The decline is evident after the hashrate reached a record-breaking high in early March. The decrease in profitability is directly responsible for the decline in block production.
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This week’s block production was 5.85. Since hashrate profits are expected to be low, this may prevent any significant recovery. ASIC costs have fallen due to this decline.
Finally, the fees per person decreased significantly over this time. Following a week in which fees reached $437,159, fees for the last week dropped 28.59% to $312,191.
Featured Image from Finbold. Charts by Arcane Research and TradingView.com.
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