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09 May 2022

Bitcoin on-chain summary: Surge in on-chain transaction volume

Bitcoin's current high volatility and growing spot volume led to a surge in on-chain activity.
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Source: Blockchain.com
The daily on-chain transaction volume surged 63% over the past week and now sits at $8.3 billion. The massive increase comes from a 66% increase in the average transaction value, as the daily number of on-chain transactions has decreased from last week and is fairly stable.The rise in the average transaction value is typical in periods of high volatility. The high volatility and many happenings in the market lately have pushed many market participants to move their coins, including to or between exchanges, which is also reflected in the surging spot volume.Due to the higher demand for on-chain transactions, the transaction fees per day increased 29% over the past seven days and are now making up 1.6% of miner revenues, among the highest levels so far in the fee-depleted year of 2022.
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Source: Bytetree
We also saw a 9% reduction in daily miner revenues, primarily due to the falling bitcoin price. As a result, the public miners are currently witnessing their stock prices plummet.The block production rate is still high, as the miners churned out 6.23 blocks per hour on average over the past seven days, which is a bit higher than the target production of 6 blocks per hour.Because of the high block production rate, the difficulty is set to increase between 4% and 5% on Wednesday, further pressuring the profitability of bitcoin miners.
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