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The bitcoin blockspace saw an explosion in demand in recent weeks as speculators flocked to create BRC-20 tokens via text tokenization.
This dramatic change in network activity has increased transaction fees to levels not seen in the last two years.
symptoms of stress
New one reports The publication by Bitfinex observed that the introduction of BRC-20 and bitcoin-based smart contracts are transforming the blockchain from its traditional reputation of a “straightforward digital currency ledger” to a more “dynamic, smart-contract-enabled chain”.
The data suggested that the BRC-20 token was responsible for over 60% of all transaction activity on the bitcoin blockchain last week, contributing around 43% of all fees.
However, the rapid popularity of BRC-20 and subsequent fee hike has affected other metrics. Active and new addresses interacting with the network are near two-year and annual lows, respectively. Such a trend could potentially indicate that high transaction fees are potentially deterring new and existing bitcoin network users.
The report says that while high transaction fees have prevented new bitcoin addresses from growing, it has boosted network health. The brief bump in mining revenue was certainly a welcome respite for network miners after the brutal bear market of 2022. Not only this, bitcoin miners earned a total of $17.75 million in revenue on 8 May.
Long Term Bitcoin Metrics
In the near term, the events of the past week, including the recent double halving of bitcoin withdrawals by Binance, appear to be negatively impacting flagship crypto-asset sentiment. Therefore, the short-term metrics still point to a possible pullback in the price of bitcoin.
On the other hand, zooming out, the longer-term on-chain indicators appear more favorable and similar to the early stages of previous bull runs. It was observed that a powerful bullish signal for the market came in the form of bitcoin trading comfortably above its 200-day moving average as well as its true price.
Another positive sign was the Bitcoin Realized HODL multiple which was in an upward trend over the past 90 days. This essentially signals that USD-denominated money is moving back towards new demand flows. In such a case, “even when profits are realized, the market is able to absorb them.”
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
The bitcoin blockspace saw an explosion in demand in recent weeks as speculators flocked to create BRC-20 tokens via text tokenization.
This dramatic change in network activity has increased transaction fees to levels not seen in the last two years.
symptoms of stress
New one reports The publication by Bitfinex observed that the introduction of BRC-20 and bitcoin-based smart contracts are transforming the blockchain from its traditional reputation of a “straightforward digital currency ledger” to a more “dynamic, smart-contract-enabled chain”.
The data suggested that the BRC-20 token was responsible for over 60% of all transaction activity on the bitcoin blockchain last week, contributing around 43% of all fees.
However, the rapid popularity of BRC-20 and subsequent fee hike has affected other metrics. Active and new addresses interacting with the network are near two-year and annual lows, respectively. Such a trend could potentially indicate that high transaction fees are potentially deterring new and existing bitcoin network users.
The report says that while high transaction fees have prevented new bitcoin addresses from growing, it has boosted network health. The brief bump in mining revenue was certainly a welcome respite for network miners after the brutal bear market of 2022. Not only this, bitcoin miners earned a total of $17.75 million in revenue on 8 May.
Long Term Bitcoin Metrics
In the near term, the events of the past week, including the recent double halving of bitcoin withdrawals by Binance, appear to be negatively impacting flagship crypto-asset sentiment. Therefore, the short-term metrics still point to a possible pullback in the price of bitcoin.
On the other hand, zooming out, the longer-term on-chain indicators appear more favorable and similar to the early stages of previous bull runs. It was observed that a powerful bullish signal for the market came in the form of bitcoin trading comfortably above its 200-day moving average as well as its true price.
Another positive sign was the Bitcoin Realized HODL multiple which was in an upward trend over the past 90 days. This essentially signals that USD-denominated money is moving back towards new demand flows. In such a case, “even when profits are realized, the market is able to absorb them.”
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
