The Bitcoin On-chain Signals have been green, despite recent volatility. Bitcoin’s price had taken a plunge towards $40K and had brought a lot of losses with it as billions of dollars in long positions were liquidated on December 4th in one of the sharpest declines of the year. While this may have lowered a few metrics, the on-chain signals are still resistant.
All data on-chain, including transaction fees, daily transactions volumes, miner revenues and transaction fees have shown positive bitcoin trends. The price drop has not affected any of these data.
Related reading: Number of Bitcoin Lightning Network Nodes Rises 23% Within Three Months| Number Of Bitcoin Lightning Network Nodes Jumps 23% In Three Months
The Recovery Trend for Hashrate continues
With the China crackdown that occurred earlier in the year, Bitcoin hashrate was under a lot of pressure. It had been responsible for providing 70% of all the country’s mining power, but it was reduced to just 30% in less than a few weeks. The hashrate suffered greatly. Since then, this has been corrected as miners of bitcoin have moved to new areas in order to continue their mining operations.
Source: Arcane Research| Source: Arcane Research
Since then hashrate has slowly picked up, and the last week has seen a substantial increase. After the first difficulty decrease following 10 difficulty adjustments, bitcoin hashrate has been up over the past seven days. The difficulty of mining has been decreasing, and so has its profitability. As a result, there has been an increase in havehrate as more miners get back in the business of mining.
Arcane Research reported, too that increased hashrates have led to an increase of block production. Each hour, an average 6.46 block has been made by miners as they return onboard. It is a 11% increase in this time period.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Bitcoin Transaction Fees Increase
While bitcoin transaction fees remain low over the last week, there has been an increase in fees during the past seven days. Bitcoin transaction fees increased by an average 33%. However, this growth does little to increase miner revenues. Although fees have increased, they still represent a small percentage of total miner revenue and bring in only 1.7%.
Grayscale: Related reading| Majority Of Bitcoin Investors Got In This Year, Says Grayscale
The average transaction value has also increased in the last week. The average transaction volume increased 8.3% as investors sold their assets during the crash. This is mainly due to larger holders moving more BTC to the exchanges in order to sell. Not only did this increase average transaction volume but it also resulted in higher transaction fees.
Bitcoin daily miner revenue in the first week December was $52,271,223 against $49,975,895 the previous week. The fees and the transactions per hour were both up to $891,499, and $276,680, respectively.
Featured Image from PSU Watch. Charts from Arcane Research and TradingView.com.