Connect with us
Active Currencies 14880
Market Cap $2,227,052,547,215.50
Bitcoin Share 50.92%
24h Market Cap Change $1.39

Bitcoin’s on-chain traffic slows down as…

2min Read

The fallout from SEC’s actions lingered for the second straight week as on-chain activity on the Bitcoin [BTC] network failed to pick up.

Bitcoin's on-chain traffic slows down as...

Share this article

  • The daily transaction count witnessed a 35% decline from the previous month.
  • Of the total inflows to the exchanges, the share of whales was just 32% as of 14 June.

The hostile U.S. regulatory environment continued to test the resilience of the crypto market. The fallout from the back-to-back legal charges against juggernauts, Binance and Coinbase, lingered for the second straight week as on-chain activity on the Bitcoin [BTC] network failed to pick up.


Are your BTC holdings flashing green? Check the Profit Calculator


Data from blockchain analytics firm Glassnode highlighted that the total transfer volume i.e. the total number of coins transferred on-chain, was hovering around $2.85 billion/day, on par with levels seen during late 2020.

What’s striking is that, unlike the post-FTX period, when volumes increased, the new crisis has moved investors away from exchanges significantly. The skepticism around the future of centralized exchanges has reignited the demand for self-custody with hodling rather than trading being the norm, at least for now.

Source: Glassnode

Transactions see sharp decline

The recent slowdown in Bitcoin on-chain activity contrasts sharply with the network jamming phase in May, which resulted in a massive backlog of unconfirmed transactions. Because of the combined effect of falling volatility and the FUD around centralized exchanges, the number of transactions has trended downwards since then.

At the time of writing, the transaction count was 380,180. This represented a decline of 35% from the previous month, data from Glassnode showed.

Source: Glassnode

Whales sit quiet

However, transactions independently don’t reveal the true picture. While transaction count was indeed up during May, the transfer volume was comparatively lower. This suggested that the surge was driven by low-value transactions done by investors holding smaller quantities of BTC.

Large addresses who hold a big chunk of BTC supply have been sitting quietly, unfazed by market dynamics. According to CryptoQuant, of the total inflows to the exchanges, the share of whales was just 32%.

This proved that high value transactions were missing on the network due to the absence of whales.

Source: CryptoQuant


Read Bitcoin’s [BTC] Price Prediction 2023-24


At the time of writing, BTC was trading in the red with a 24-hour fall of 3.58%. The drop pulled it below $25,000 for the first time since mid-March, per CoinMarketCap.

Interestingly, the pullback came despite the U.S Federal Reserve’s decision not to go ahead with an interest rate hike for the first time in over a year.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.