Bitcoin On-Chain Activity Bleeds Despite Hashrate Growth

Bitcoin on-chain activity has been swinging between green and red for a while. This time around, though, after the price of bitcoin had suffered a tremendous loss, the on-chain activity has turned to the downside once more. The decline has cut across the majority of metrics, leading to as large as double-digit declines in some of them.

Activity Stays Low

The bitcoin on-chain activity has left a lot to be desired for the last week. An example of this is the miner revenues. Bitcoin daily miner revenues had dropped to a new yearly low of $18 million, following bitcoin’s decline to $17,600. There was a recovery in this that brought the daily miner revenues back above $20 million, but once again, the miner revenues have dropped.

For last week, daily miner revenues fell by about 0.10% to $20.7 million. However, this turned out to be the smallest decline for the same time period. Daily revenues made up by fees were down 0.27% to 1.10%. In contrast, transactions per day saw a 3.78% decline in the same time period.

BTC rises to $20,100 | Source: BTCUSD on TradingView.com

The largest drop for last week was recorded for the fees per day. The 21.27% decline saw it fall from $265,595 to $209,093. As for the daily transaction volumes. This on-chain metric saw a decline of 16.70%, with a drop from $3.356 billion to $2.796 billion. This shows that there are fewer funds being moved across the bitcoin blockchain.

Bitcoin Hashrate Takes A Rise

The bitcoin hashrate was one of the only things that were green for the time period. Where most had been recording declines, the block production per hour had jumped significantly. The 7.31% pushed the average of 6.18 blocks to 6.64 blocks. This is the only green in the sea of red. The increase in the bitcoin block discovery rate was most likely the reason behind the decline in transaction fees, leading to the lowest average daily transaction fee since April 2020.

Hashrate recovers amid a sea of red | Source: Arcane Research

Naturally, the hash rate had been on the rise. This last ditch surge in the last week of August saw it rise towards June highs. However, it stopped slightly short of its all-time high but continues to maintain an encouraging upward trajectory.

The average transactions per block and the average transaction value were down, though. Average transactions per block were down 3.78% to 1,537, and average transaction value dropped 13.43% from $13,195 the prior week to $11,422 last week.

Featured image from Coingape, charts from Arcane Research and TradingView.com