Activity on the Bitcoin (BTC) network is nearing all-time lows, with traders slowing down significantly in the two months since Bitcoin reached all-time highs.
Insights from data analytics firm Santiment show a slowdown in on-chain activity on the Bitcoin network over the past few months, revealing a nuanced picture of the current state of the cryptocurrency.
In a May 11 update to X, Santiment highlighted that on-chain activity on the Bitcoin network was at its lowest level since 2019. This observation stems from a noticeable downward trend in various indicators, including trading volume, daily active addresses, and whale trading. count.
According to Santiment, Bitcoin’s on-chain transaction volume is ending at its lowest level in a decade, and the number of daily active addresses is at its lowest since January 2019.
Additionally, trading in whales, which are typically worth more than $100,000, has slowed significantly, reflecting levels last seen in December 2018, according to data from the analytics firm.
While the decline in on-chain activity may seem surprising at first glance, analysts at Santiment have suggested that it may not be directly linked to the impending BTC price drop as witnessed in recent weeks.
Instead, they attribute the decline to “public fear and indecision” among traders, highlighting the complex link between on-chain activity and market sentiment.
Despite these difficulties, the price of Bitcoin remains relatively stable at the time of this writing, rising slightly by 0.1% over the past day to just over $61,000.
The coin recorded a 24-hour trading volume of $12.67 billion, down more than 37% from the previous day.
In 7 days, the price of Bitcoin fell 4.6%. This means that Bitcoin prices are underperforming the global cryptocurrency market, down 4.2%, according to data from CoinGecko.
As investors navigate this period of consolidation and downturn in on-chain activity, market sentiment and broader economic factors are likely to play a pivotal role in shaping Bitcoin’s trajectory in the coming weeks.
Bitcoin, Loon Protocol
Bitcoin’s Runes protocol recorded $135 million in transaction fees on the cryptocurrency’s largest blockchain, according to the Dune Analytics dashboard.
According to on-chain data, tokens issued under the standard cost more than 2,100 BTC within a week of the halving.
After that, activity slowed down. According to the Dune analytics dashboard cited by The Block, the lowest level of activity in the Runes protocol occurred on Friday, May 10th.