Crypto Market Madness Leads To Surge In Bitcoin On-Chain Activity

The current crypto market climate has seen bitcoin on-chain activity light up like a Christmas tree. All across the board, on-chain activity is surging. This is a result of the recent dips and recovery that has investors scampering to move their coins around to either avoid losses or make a profit and that has seen some important on-chain metrics glow green in the last week.

Transaction Volume Surges

It seems that during times when the price of bitcoin is down, activity in the digital asset tends to surge. This has certainly been the case in the last week during which the price of bitcoin had successfully declined to the $25,000 level. Subsequently, there had been a rise in the transaction volumes per day, presumed to be a result of plummeting prices causing investors to begin moving their coins once more.

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Transaction volumes on a daily basis had grown a whopping 75.70% in the span of one week. This saw volumes grow from $6.720 billion per day to $11.808 billion last week. Not only this, the number of transactions per day had grown, although not by a large margin. This metric only grew 2% from 264,472 to 269,759 in the space of last week.

BTC price trending at $30,400 | Source: BTCUSD on TradingView.com

Average transaction value had also grown significantly. This was obviously the catalyst behind the growth of average transaction volumes. The previous week, the average dollar value of a single transaction had been sitting at $25,410. This figure grew 72.26% last week to come out to $43,771 on average. Incidentally, the average number of transactions also grew 2% from 1,849 to 1,886.

Bitcoin Miners See Losses

The revenue of bitcoin miners has been on the decline lately. However, last week saw one of the largest declines recorded for the year. The daily miner revenues had plunged from $35,192,55 to $27,503,404, constituting a -21.85% change in the space of seven days.

This decline would not translate to transaction fees though. Daily fees per day had risen 33.61%, the third-largest increase that was recorded for last week. This saw fees grow from $515,822 to $689,182. Alongside this, the daily percentage revenues were also on the rise. 

BTC hashrate on the rise | Source: Arcane Research

It is one of the highest that fees have contributed to the daily miner revenues. Last week, an increase to 1.04% of all miner revenues being made up by fees was celebrated. However, this week would prove to be even better with 2.51% of all miner revenues being generated from fees.

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The block production rate was down tough. It is now sitting at 5.96 blocks produced per hour, a 4.94% drop from the previous week’s 6.27. This, combined with the declining prices of the digital asset, had contributed largely to the decline in miner revenues.

Bitcoin hashrate remains on the rise. It is now sitting at 220EH/s. The price of BTC continues to trend in the mid-$30,000s, presently trading at $30,610 at the time of this writing.

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