Data shows the latest selloff has caused the Bitcoin blockchain activity to come back to life after it had stayed muted for a while now.
Bitcoin On-Chain Activity Returns As The Selloff Continues
According to the latest weekly report from Arcane Research, the BTC transaction fees has observed a 17% uplift over the past week.
For the last few months, the Bitcoin on-chain activity had been quite subdued as fewer movements took place and the transaction fees remained low.
The “transaction fees” is the amount any investor has to attach with the transaction in order to complete the transfer.
Miners receive this fee in exchange of handling the transaction. Usually, they prioritize transactions with higher fees in order to maximize their revenues.
The value of the average Bitcoin transaction fee is variable as it depends on the specific network conditions at the time of the transfer.
When the mempool is clogged due to the network observing a high amount of transactions, the fees naturally goes up.
It’s because miners can only handle a limited amount of transactions at a time and investors who don’t want to wait just attach a bigger fee.
Related Reading | Bitcoin Miner Revenues Now 61% Lower Than Past Year Average
The Bitcoin network wasn’t too busy in the last few months and so the transaction fees remained at historically low levels.
Now, here is a table that shows how the Bitcoin miner-related metrics have changed over the last week:
Looks like the average transaction value went up over 52% during the past seven days | Source: Arcane Research's The Weekly Update - Week 24, 2022
As you can see above, the Bitcoin transaction fees increased by 17% over the last week as the price of the crypto plunged down.
The fees per day now makes up for 2.39% of the total BTC miner revenues, the highest value since the July of last year.
The transactions per day are currently sitting at 252k, which is about the same value as last week as this number is pretty much the limit on the network.
The daily miner revenue itself has observed a deep 32% plummet caused by the price crash and the increase in the mining difficulty.
Though, things will improve soon for the miners as the hashrate has dropped off, resulting in a 1.9% difficulty reduction.
At the time of writing, Bitcoin’s price floats around $20.1k, down 5% in the last seven days. Over the past month, the crypto has lost 31% in value.
The price of the coin seems to have declined a bit over the past day | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on Unpslash.com, charts from TradingView.com, Arcane Research