The Bitcoin network saw a significant decrease in average block size and transaction rate, and the price also fell to around $64,100.
The decline in block size, a measure of the transaction data contained in each block, has meant a sharp decline in Bitcoin (BTC) blockchain activity, which hit a yearly low on June 7.
In June, the network’s transaction per second (TPS) rate simultaneously decreased, indicating a potential decline in miner profitability due to lower activity and lower BTC block rewards.
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Meaning of half life
The BTC halving event that occurred in April reduced miners’ block rewards by 50%, effectively reducing their profits and incentives to contribute to blockchain activity.
By June, the highest was around 28 TPS and the lowest was less than 4.5 TPS, with an average TPS of 9.12 TPS at the time of this writing.
Related: Top altcoins drop by double digits, ‘no clear catalyst’ for carnage
Runes tell a different story
Despite the current state of the BTC blockchain, the performance of the Rune mining market provides additional insight into the Rune ecosystem and network as a whole.
According to Leonidas’
The secondary market performance of the top ten rune mints varied considerably, from a low of -82.76% to a high of +1,194.42%, indicating continued strong market activity.
Related: Traders who don’t mind Bitcoin’s sub-$65,000 levels say BTC price remains ‘high and stable’.
Bitcoin market ebb and flow
The recent price drop and subsequent decline in network activity could be the start of a long-term correction.
Crypto analyst Rekt Capital recently discussed a potential continued correction in BTC forming a “price action cluster near Range High resistance of ~$71,600.”
According to the analyst, on June 17, BTC came “very close” to retesting the $64,000 and $62,500 levels identified by the daily Chicago Mercantile Exchange gap.
These gaps represent areas on the price chart where there is a noticeable difference between one day’s close and the next day’s open price.
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