InsideBitcoins.com

On-Chain Activity on Bitcoin Spikes as Transfer Volumes Surge

Will Huge Spike in the Price of Bitcoin Lead to FOMO

Bitcoin’s rough week has been marked by an increase in on-chain activity and transfer volumes. This data is according to metrics provided by Glassnode.

Glassnode, an on-chain analytics platform, has provided insights into the performance of the Bitcoin network. The report shows significant growths in several areas, including surges in on-chain transaction volume and fees.

Glassnode attributed this to the market correction that happened recently after new traders left the market. Last week’s market correction for Bitcoin has heightened the fear of investors towards cryptocurrencies.

Increase in BTC transfer volumes

The report by Glassnode also demonstrates that the increased on-chain activity resulted from congestion caused by the decreased hash rate.  The network has also been under pressure from retailers who wanted to sell their Bitcoin after the crypto dropped to below $48000. It was the lowest price for the crypto since the beginning of the year.

Glassnode also highlighted that the weekly average transfer volume was almost at $51 billion. This figure was 25% higher than what was recorded in the 2017’s market correction, where the ATH stood below $41 billion.

The report further added that the daily active addresses had reduced by 10% in the past week. This reduction had been caused by a surge in transaction fees, which also reached an all-time high of $54.40. However, this fee has been reduced to around $17 after the recovery of the hash rate to 137.23 EH/s.

The recovery of the hash rate had also returned Bitcoin Miners to their high net position, which according to Glassnode, will be highest since the mid of 2018.

Bitcoin’s price movement

Bitcoin’s most significant hit occurred last week, but the crypto has since recovered and still dominates the cryptocurrency charts. At the time of writing, Bitcoin was trading above $54,000, which is an over 3% growth from what was recorded the previous day. Bitcoin has its lowest dip this year over the weekend, where it went to around $47,000.

While Bitcoin is starting to recover, it still has a long way to go before reaching the highest level it obtained this year of $65,000. The bullish trend may progress for the better part of the year, given that institutions and investors continue pushing for Bitcoin adoption.

To regain its previously high prices, Bitcoin needs to move past the $55,000 mark. This price will also push its market cap past $1 trillion like what was previously recorded. Altcoins have also been in a bullish state for the better part of the year.

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • US-Friendly
  • Paypal accepted
  • 12+ cryptocurrencies
4.5/5

Visit Site
75% of retail investors lose money.
eToro Reviews

    eToro Reviews

    https://insidebitcoins.com/visit/etoro-newsCreate your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees
    4.5/5

    Visit Site
    80.5% of retail investors lose money.
    Plus500 Reviews

      Plus500 Reviews

      https://insidebitcoins.com/visit/plus500-newsCreate your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Past performance is no guarantee of future results.
      Avatar

      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.

      Leave a Reply

      Your email address will not be published. Required fields are marked *