Activity on the Bitcoin (BTC) network has seen a significant decrease in recent months, following a new all-time high price. Data from Santiment, a data analytics firm, shows a noticeable slowdown in on-chain activity on the Bitcoin network. This includes a decrease in transaction volume, daily active addresses, and whale transaction count.
Santiment reported that on-chain activity on the Bitcoin network is currently at its lowest point since 2019. Transaction volumes are nearing a 10-year low, while daily active addresses are at their lowest since January 2019. Whale transactions, which are typically over $100,000, have also slowed down significantly.
Despite the drop in on-chain activity, analysts at Santiment believe it may not necessarily indicate an imminent drop in BTC price. They attribute the decline to trader indecision and fear, emphasizing the connection between on-chain activity and market sentiment.
At the time of writing, Bitcoin’s price was relatively stable at just above $61,000, with a slight increase of 0.1% in the past day. The coin also recorded a 24-hour trading volume of $12.67 billion, which was 37% lower than the previous day. Over the course of seven days, Bitcoin’s price dropped by 4.6%, underperforming the global crypto market, which is down by 4.2%.
As investors navigate through this period of decreased on-chain activity, market sentiment and broader economic factors are likely to play a crucial role in determining Bitcoin’s future trajectory in the coming weeks.
Additionally, the Runes protocol on Bitcoin has seen a decline in activity after generating $135 million in transaction fees on the cryptocurrency’s largest blockchain. Tokens issued under the standard produced over 2,100 BTC costs within a week after the halving but have since slowed down. Friday, May 10 marked the lowest level of activity on the Runes protocol according to data from a Dune Analytics dashboard.