Activity on the Bitcoin (BTC) network is approaching historic lows, with traders significantly slowing down transactions in the two months since Bitcoin reached a new all-time high price.
Insights from data analytics company Santiment reveal On-chain activity on the Bitcoin network has slowed over the past few months, painting an accurate picture of the cryptocurrency's current state.
In a May 11 update on
According to Santiment, on-chain Bitcoin transaction volumes are near a 10-year low, while the number of daily active addresses is at its lowest levels since January 2019.
Additionally, whale transactions, typically worth more than $100,000, have slowed significantly, reversing levels last seen in December 2018, the analytics firm's data shows.
While the decline in on-chain activity may seem alarming at first glance, analysts at Santiment have indicated that it may not be directly related to the impending decline in Bitcoin prices, as we have seen in recent weeks.
Instead, they attribute the decline to “crowd fear and hesitation” among traders, highlighting the complex relationship between on-chain activity and market sentiment.
Despite these challenges, Bitcoin's price has been relatively flat at the time of writing, hovering just above $61,000, with a slight increase of 0.1% in the past day.
The coin recorded a 24-hour trading volume of $12.67 billion, which was 37% lower than the previous day.
Over a seven-day period, Bitcoin's price fell by 4.6%, meaning it underperformed the global cryptocurrency market, which fell by 4.2%, according to data from CoinGecko.
As investors navigate this period of consolidation and weak on-chain activity, market sentiment and broader economic factors will likely play a pivotal role in shaping Bitcoin's path in the coming weeks.
Bitcoin, Rune Protocol
According to the Dune Analytics dashboard, the Runes protocol on Bitcoin generated $135 million in transaction fees on the largest blockchain in the cryptocurrency.
On-chain data showed that tokens issued under the standard generated more than 2,100 BTC within a week after the halving.
Since then, activity has slowed. According to the Dune analytics dashboard, Quote By The Block Friday, May 10 saw the lowest level of activity on the Runes Protocol.
