Bitcoin's recent surge has the markets buzzing, and you can't help but wonder where the end of this bull cycle lies. To help identify the top of the market cycle, it's helpful to look at two network metrics.
Looking at the first, “Bitcoin Active Addresses (7D),” this metric refers to the number of active wallets used to send or receive bitcoin. Currently, 1 million addresses per day are transacting, and past cycle peaks have been around 1.2 million per day, so it's hard to say that on-chain transactions are overheating just yet.
The second is “Bitcoin Total Fees (7D). This metric shows the average of fees incurred per transaction in USD. An increase in transaction fees is one indicator of how congested the network is. Looking at past cycle peaks, we can see that we were in an irrational transaction fee situation when it was around 25 USD per transaction. Currently, it's stabilized at 1.21 USD. However, we believe that this cycle feature could lead to more frequent increases in fees than in past cycles, as more attempts are being made for network scalability, such as Ordinals and Bitcoin Layer 2.
In conclusion, both metrics suggest that the Bitcoin network is stabilizing, and that there is room for network activity and price appreciation up to the cycle peak.
Written by MAC_D
