It has been a tumultuous week for Bitcoin in terms of on-chain activity with new records being reached for transfer volumes and transaction fees.
On-chain analytics provider, Glassnode, has detailed the week’s activity for the Bitcoin network noting that a number of milestones and all-time highs have been hit for various metrics.
It noted that the peaks in on-chain transaction volume and fees suggest that the recent correction has largely affected relatively newer entrants to the market, and strong hands remain strong.
It is the fourth time BTC has corrected in the current market cycle, but the formation of a lower low since the third pullback has increased the general level of fear in overall market sentiment.
BTC Transfer Volume High
A lot of this extra activity has come from the Bitcoin network working through mempool congestion resulting from last week’s drop in hash rate, the report added.
There has also been an increase in demands on the network due to selling pressure in the correction, which dropped prices as low as $47,250 on Sunday, April 25.
It noted that the seven-day moving average of transfer volume reached new highs of almost over $51 billion settled on a daily basis. This is almost 25% higher than the previous ATH, which came in late 2017 at just under $41 billion.
“The network has now consistently settled more than $10B in transfer volume per day for a 136-day period, exceeding the peak duration observed in the 2017 bull market.”
There has been a corresponding decline in the number of daily active addresses, which has dropped by around 10% over the week. Glassnode attributed this to an increase in average transaction fees, which hit a new high of $54.40, according to the report.
At the time of writing, Bitinfocharts was reporting that the median Bitcoin transaction fee had fallen back to around $17. This has correlated with a recovering in hash rate, which has returned to 137.23 EH/s according to the data provider.
Glassnode added that BTC miners have returned to ‘accumulation mode’ with their net position change reaching highs not seen since mid-2018.
Bitcoin Price Update
At the time of press, Bitcoin was trading up 3% on the day at $53,800, according to Coingecko. Since its weekend plunge towards $47K, BTC has recovered by 13.8% but is still down 17.2% from its $65K all-time high on April 14.
The asset still needs to break resistance at $55K to resume the uptrend towards previous highs. As reported by CryptoPotato, BTC’s market dominance dropped to its lowest level for 33 months as altcoins remain bullish.