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15 May 2022
Bitcoin on-chain summary: On-chain activity surging
Over the past few days, many happenings in the market have led to a surge in on-chain activity.
The daily transaction volume surged by 76%, primarily caused by an increase in the average transaction value of 72%.Larger transaction sizes are typical in such high spot volume periods, as traders move their coins to or between exchanges, further confirmed by the number of exchange withdrawals reaching a 5-month high.The high number of exchange withdrawals could be caused by FUD related to a Coinbase report regarding the security of users' funds and the chaos surrounding UST, making users more protective of their holdings.The transaction fees continue to grow and are now 2.5% of miner revenues, the highest since July 2021. Still, they are sitting at low levels considering the surge in on-chain activity.Source: BytetreeThe 4.9% increase in difficulty coupled with the falling bitcoin price seems to have stopped new hashrate from coming online, and the block production rate has decreased to 5.96 blocks per hour, close to the target of 6. Once again showing the well-working function of difficulty adjustments.The falling bitcoin price and reduced block production rate have led to a 22% reduction in daily miner revenues, now sitting at the lowest level since July 2021. At that time, the hashrate was only 90 EH/s, while it now is sitting close to all-time highs at 220 EH/s, meaning that each miner earns considerably less USD for their hashrate than last summer.