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- The data tracked by IntoTheBlock revealed that Bitcoin
’s network fees increased by 38% last week, reaching an average of $0.000086 per transaction. - As a result of the increase in network activity on September 3rd, network fees rose and miners began increasing their BTC holdings between September 4th and 5th.
- According to data from Glassnode, the daily number of new addresses created for trading BTC fluctuated between 450,000 and 530,000 when evaluated based on a seven-day moving average.
Did the increase in transaction fees on the Bitcoin network indicate a revival of interest? It could be good news for the price!
Observing an Increase in Bitcoin Network Fees
The data tracked by IntoTheBlock revealed that Bitcoin’s network fees increased by 38% last week, reaching an average of $0.000086 per transaction. The increase in network fees was attributed to the revival in network activity.
Data from Dune Analytics revealed an increase in written transactions on the Bitcoin network this month. On September 3rd, these written transactions recorded the second-highest daily level with 418,000 transactions.
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As of September 8th, the number of written inscriptions decreased by around 150,000, but the daily number of inscriptions remained at high levels observed in August.
As network fees increased due to the rise in network activity on September 3rd, miners started to increase their BTC holdings between September 4th and 5th. The evaluation of BTC’s Miner Transaction Flow showed a 364% increase in daily inscription transactions when it reached the second-highest level and between the following two days.
The Miner Transaction Flow metric measures the amount of BTC flowing from miners to exchanges. When this metric increases, miners are selling more BTC than they produce. For context, as of September 3rd, BTC’s Miner Transaction Flow was at 81.57 coins. According to CryptoQuant data on September 5th, this amount increased to 376.78 BTC.
Additionally, BTC’s Miner Reserve showed coin outflows confirming miners’ actions to generate profit during the analyzed period.
Between September 3rd and 5th, this metric showed a decrease, indicating that miners took action to generate profit as network fees increased.
At the time of writing, BTC’s Miner Reserve according to CryptoQuant data shows 1.84 million BTC.
Daily Demand Increases While Price Continues to Fall
While BTC’s price remains within a narrow range, there appears to be a return of new demand for the leading coin. According to data from Glassnode, the daily number of new addresses created for trading BTC fluctuated between 450,000 and 530,000 when evaluated based on a seven-day moving average. As of September 8th, a total of 527,908 new addresses completing transactions related to BTC were observed.
An increase in new demand for an asset indicates a renewed interest in the asset and is often a precursor to price increases. While BTC continues to face the $26,000 price level at the time of writing, it has entered an upward trend as the Chaikin Money Flow (CMF) is positioned above the centerline.
A CMF for an asset measures the flow of money entering and exiting the asset. When this indicator rises, money flows into the asset. Conversely, a declining CMF indicates money flowing out of the asset. If the CMF rises while the price fluctuates within a narrow range, it indicates increased liquidity flowing into the asset but not enough positive market sentiment to significantly increase its value.
It is important to note that if the CMF rises within a narrow price range, it is a sign of high volatility in the market and may be a good time for trading.
