Bitcoin (BTC) Faces Major Hurdle: A Downward Trend Looms Ahead!

  • Bitcoin’s active addresses’ 7-day moving average has seen an increase for the first time since March 2020.
  • High transaction fees can discourage users from interacting with the blockchain, as seen with the recent surge in gas fees on the Runes platform.
  • The statistics from the Bitcoin network are causing confusion among users and experts alike.

Bitcoin’s active addresses see an increase for the first time since March 2020, amidst confusion caused by high transaction fees on the Runes platform.

Bitcoin Network Statistics Cause Confusion

The 7-day moving average of active addresses dropped to 689,810 on April 23, but showed a slight recovery to 839,400 on April 30 as fees stabilized. The 7-day moving average of the average transaction fee on the network was $39.15 on April 23, down from $11.92 on April 30.

Active Addresses and Transaction Fees

The moving average of active addresses fell below the previous figure to only 655,190 on May 12. In contrast, the moving average of transaction fees also fell to $3.86, paralleling the pre-halving situation. Considering that transactions create change addresses, a similar trend emerged for new addresses on the network, which usually follow a model similar to active addresses.

Runes Transactions Still Dominate Bitcoin Activity

Transactions related to Runes still make up a large portion of Bitcoin activity and typically account for more than half of daily transactions since they were launched. However, the enthusiastic atmosphere has disappeared, and fees have been allowed to calm down due to a decrease in the desire to pay a heavy premium to prioritize a transaction.

High Gas Fees and Bitcoin Active Addresses

High gas fees may have initially caused a slowdown in Bitcoin active addresses, but it no longer seems to be the main problem. Some people may continue to wait for new signs that the excitement about Runes is really over. A broader market slowdown may also be playing a role in the decline.

Conclusion

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Jocelyn Blake
Jocelyn Blakehttps://en.coinotag.com/
Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.
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