On-Chain Activity on Bitcoin Spikes as Transfer Volumes Surge
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.
#Bitcoin price continued to slide lower last week, as on-chain data signals a healthy shake-out.
– Peaks in on-chain activity
– New hands shaken out
– Old hands and miners hold strong
– #Uniswap usage growth
Read More in The Week On-chainhttps://t.co/Z7TCQ6aefw
— glassnode (@glassnode) April 26, 2021
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.