Despite the present macro headwinds, Bitcoin and the broader cryptocurrency market held sturdy final week. The crypto market is at the moment present process a partial retracement and will probably be fascinating to see if it might maintain as much as the $1 trillion benchmark.
Glassnode brings some on-chain metrics to know whether or not that is only a bear market rally or a bullish pattern reversal.
Bitcoin On-Chain Metrics
The information supplier refers back to the present worth surge as bearish impulses since Bitcoin lively addresses proceed to stay in a downtrend channel. Although there have been few exercise spikes throughout the capitulation occasions, nevertheless, the broader community exercise suggests that there’s little inflow of recent demand as of now.
Furthermore, the on-chain transaction charges present that we’re nonetheless within the bear market territory. Currently, there’s solely 13.4 BTC in complete charges paid every single day. Unlike the present bear market, the bull markets usually preserve elevated price charges exhibiting up first indicators of demand restoration.
As of the present situation, the Bitcoin community blocks are remaining partially empty with low community congestion. Glassnode notes: “This indicates that overall, the Bitcoin network remains HODLer dominated, and as yet, there has not been any noteworthy return of new demand, as viewed through the lens of on-chain activity”.
But on an optimistic be aware, the general public channels for the Bitcoin Lightning Network proceed to make new all-time highs. The Lightning Network public capability has now reached a complete of 4,405 BTC. The Lightning community capability has jumped by practically 20% within the final two months regardless of sturdy bearish sentiment.
Ethereum On-Chain Metrics
Ethereum skilled the identical tendencies as Bitcoin over the past 12 months. There’s been a gradual deterioration in mixture community utilization and congestion. Despite the current ETH worth pump, the community congestion stays the bottom. Over the final 12 months, Ethereum transaction demand has been on a gradual decline.
As Glassnode explains: “Ethereum gas prices have recently declined to just 17.5 Gwei on a 7-day median basis. This is the lowest network congestion and gas price since May 2020, which was prior to DeFi Summer, and before the initiation of the bull market”.
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