On-Chain Metrics Suggest This Crypto Bear Market Won’t Be As Brutal as Past Cycles: Analytics Firm IntoTheBlock

Please fol­low and like us:
Pin Share

Cer­tain on-chain indi­ca­tors sug­gest the cryp­to market’s cur­rent down­trend may not end up being as bru­tal as past bear mar­kets, accord­ing to Lucas Out­u­muro, head of research at ana­lyt­ics firm IntoTheBlock.

In a new analy­sis, Out­u­muro acknowl­edges that it’s get­ting “hard­er and hard­er to argue we are not in a bear market.”

Though the total cryp­to mar­ket cap is down 57% its all-time high of about $3.07 tril­lion, which it hit last Novem­ber, Out­u­muro notes that fun­da­men­tal indi­ca­tors have dipped less com­pared to pre­vi­ous bear markets.

“As a high por­tion of demand comes from spec­u­la­tion, it is nor­mal for trans­ac­tion fees to plum­met severe­ly as trad­ing sen­ti­ment dwin­dles through bear mar­kets. Remain­ing at high­er lev­els, how­ev­er, sug­gests stick­i­er demand.

Bit­coin has been aver­ag­ing above $500,000 in dai­ly trans­ac­tion [fees] in May 2022, com­pared to $130,000 in May 2018. Ethereum and oth­er cryp­to assets mir­ror this same pat­tern of less pro­nounced drops in on-chain activ­i­ty than in pri­or bear markets.”

Both Bit­coin (BTC) and Ethereum (ETH) are also dis­play­ing con­sis­tent progress in devel­op­ment activ­i­ty despite the recent bear­ish price action, accord­ing to the researcher.

“Com­mits to the Bit­coin net­work have grown over 50% in the past two years as devel­op­er efforts con­sis­tent­ly improve. This has been one of the few lead­ing indi­ca­tors for growth in cryp­to, since being an open-source ecosys­tem, it relies on devel­op­ers glob­al­ly con­tribut­ing for sus­tained improve­ment of these networks.”

Source: IntoThe­Block

At time of writ­ing, Bit­coin is chang­ing hands for $29,625, down over 3% on the day.

Check Price Action

Don’t Miss a Beat – Sub­scribe to get cryp­to email alerts deliv­ered direct­ly to your inbox 

Fol­low us on Twit­ter, Face­book and Telegram

Surf The Dai­ly Hodl Mix

&nbsp
Check Lat­est News Headlines

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Fea­tured Image: Shutterstock/Professional Bat/INelson



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *