How Are On-Chain Data for Bitcoin and Ethereum? Is the Contraction Continuing?

• The total adjusted on-chain transaction volume for the two leading crypto assets, Bitcoin and Ethereum, decreased by 6.3% in August, falling to $176 billion.
• In August, the supply of stablecoins issued contracted by 2.2%, dropping to $115.1 billion. Tether (USDT) and Circle (USDC) slightly increased their market share.
• Despite regulatory pressures, Binance maintains its leadership position with a 73.4% share. Coinbase is second with 10.2%, followed by Kraken with 5.3%.

What’s the current situation in Bitcoin, Ethereum, and the overall cryptocurrency market? Bitcoin and Ethereum data reflect silence!

Current Status of Bitcoin and Ethereum

The total adjusted on-chain transaction volume for the two leading crypto assets, Bitcoin and Ethereum, decreased by 6.3% in August, falling to $176 billion. According to research, Bitcoin’s monthly transaction volume decreased by 6.7%, and Ethereum’s decreased by 5.7%.

Additionally, this marks the fifth consecutive month of decline since March, and on-chain transaction volume has decreased by 56% compared to the same month last year.

Nevertheless, the adjusted on-chain stablecoin volume increased by 6.8% in August, rising to $520.9 billion. However, this measure has dropped by about 35% compared to March figures.

In August, the supply of stablecoins issued contracted by 2.2%, dropping to $115.1 billion. Tether (USDT) and Circle (USDC) slightly increased their market share. Crypto revenues have also decreased. Bitcoin miner revenue decreased by 6.8% to $805 million in August, while Ethereum staking revenue decreased by 7.5% to $130 million. The monthly NFT market volume on Ethereum decreased by 8% to $391 million, with secondary sales also declining.

Centralized exchange spot volume also decreased by 2.8%, falling to $261.6 billion, reaching its lowest level since October 2020. Despite regulatory pressures, Binance maintains its leadership position with a 73.4% share. Coinbase is second with 10.2%, followed by Kraken with 5.3%.

Crypto derivative trading has also seen a decline. The Bitcoin futures open position ratio, or the number of outstanding contracts, decreased by 14%, and Ethereum contracts decreased by 18%. Additionally, BTC monthly futures trading volume decreased by 5.4% to $603 billion, while ETH futures trading monthly volume decreased by 15.5% to $264 billion.

September is generally a quiet month for crypto, with more losses than gains seen in previous years. However, crypto investor and Ethereum educator Anthony Sassano is taking a positive approach. He said, “Late-cycle crypto markets are worse for most people than bear markets,” and added:

“This is usually the ‘what happens if there’s never another bull market again in crypto?’ part of the crypto cycle, and it’s typically when the bull comes back.”

Market Outlook

Over the weekend, crypto markets returned to a state of stagnation, with the total market cap hovering just below $1.1 trillion. BTC is currently trading just below $26,000, with a 0.35% increase during the day.

Ethereum, on the other hand, is trading at $1,638 with a slight 0.26% increase in the past 24 hours. Ethereum’s trading volume has increased by 20%.