Bitcoin Enters Hibernation Mode As Network Activity Lulls
30 Juin 2022 - 7:00PM
NEWSBTC
Bitcoin has seen a tremendous slow down in network activity
following the market crash in mi-June. This drawdown was expected
as a reduction in network activity usually follows a rush to get
out of the digital asset during the decline. This lull has brought
various metrics back towards normal territories and daily miner
revenues remain drowsy during this time. Network Activity Slows
After the price of bitcoin had crashed to $17,600, there was a rush
to get out of the digital asset. This had led to a tremendous surge
in network activity. Average transaction volume had shot up from
around $18,000 to $37,000 during the past week as volatility rocked
the market. Mostly, these moves were triggered by fear that the
price of the cryptocurrency would continue to decline. Related
Reading | Holding Back The Bears: Why Bitcoin Must Break
$22,500 However, as the price of bitcoin has stabilized, the
network activity has begun to return to normal levels. This is seen
in the average transaction value for this week which has fallen by
almost 50% to return to the $18,000 level. Additionally, on-chain
activity has now dropped so low that it has now entered what is
referred to as a hibernation mode. Transactions per day on
the network have also declined with the stability returning back to
the market. This number had been at 252,382 on average for the past
week but now sits at 242,737 representing a -3.82% drop. BTC price
declines to $19,000 | Source: BTCUSD on TradingView.com The same
has been the case for the total daily transaction volumes. While
investors had scrambled to exit their positions, daily transaction
volumes had risen to more than $9 billion. However, with bitcoin
stabilizing at around $20,000, this value has dropped to $4.4
billion, a 51.75% change from the prior week. Bitcoin Miners Take
Hits Bitcoin miners have been one of the worse-hit when it comes to
the changes that are happening in the market. An example is the
daily miner revenues that are being recorded for the last couple of
weeks. It had declined significantly in the month of June,
and there has been no recovery in sight. The prior week had seen
daily revenues touch $18.3 million per day, and with the last week,
there has not been much change. A 2.02% rise meant that daily miner
revenues rose to $18.69 million, while the percentage made up by
fees dropped by 0.7%. BTC hashrate declines | Source: Arcane
Research It is also shining through in the hashrate which has also
taken a bit of a nosedive. After hitting a new all-time high
earlier in the month, the decline has been apparent so far. It is a
direct result of decreased profitability, affecting the block
production rate. Related Reading | Bitcoin Records Worst
Performance For June, Will It Get Better From Here? The number of
blocks produced per hour last week came out to 5.85, and since
hashrate is expected to remain depressed due to low profitability,
there may not be much recovery in the block production either. This
decline has also translated to lower ASIC prices. Lastly, fees per
day also dropped significantly during this time. After touching
$437,159 in the prior week, a 28.59% drop saw fees per day for last
week come out to $312,191. Featured image from Finbold, charts from
Arcane Research and TradingView.com Follow Best Owie on Twitter for
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