Brief Overview:
• Bitcoin’s on-chain activity has fallen to its lowest level since 2019.
• This decline coincides with a decrease in Rune Protocol activity.
• Notably, two Satoshi-era Bitcoin addresses were activated today, May 12th.
The price of Bitcoin (BTC) has risen sharply at the start of the new year, successfully surpassing the $70,000 mark and generating significant interest and activity in its blockchain network.
However, recent developments have shown signs of cooling down these indicators. Over the past two months, the price of Bitcoin, the leading digital asset, has encountered resistance and its on-chain activity has also decreased.
Bitcoin on-chain activity plummets to 5-year low
Data from blockchain analytics firm Santiment shows that Bitcoin’s on-chain activity has reached its lowest point since 2019. The drop indicates reduced interest among traders and is in stark contrast to early enthusiasm.
The firm suggested that the downturn may reflect a broader sentiment of fear and uncertainty among market participants. Such sentiment is consistent with historical patterns, as reduced trading volumes often coincide with periods of market volatility. Notably, BTC’s price has fallen by more than 11% over the past month to $62,834 at press time.
“This is not necessarily a sign of further BTC decline, but rather a sign of fear and indecision among the crowd,” Santiment analysts wrote.
Meanwhile, some market observers noted that the decrease in on-chain activity coincided with a slowdown in Rune Protocol transactions after an initial surge. The protocol launched on Bitcoin halving day, bringing record transaction fees and volume to the blockchain network. Despite a promising start, recent data suggests user engagement and transaction volume are declining significantly.
Crypto analyst Budhil Vyas pointed out that after Runes Protocol set a record of $135 million in transaction fees in its first week, fees exceeded $1 million only on two days in the past 12 days, with activity dropping to its lowest point on May 10.
Additionally, the enthusiasm surrounding spot Bitcoin exchange-traded funds (ETFs) appears to be fading. Data from CoinShares shows a significant slowdown in trading volume for spot Bitcoin ETFs. Over the past month, several funds have experienced outflows and days without inflows.
Amid a downturn in the ecosystem, two long-dormant Bitcoin addresses originating from the early days of Satoshi Nakamoto have recently become active again.
According to blockchain analysis platform Lookonchain, after lying idle for about 11 years, these wallets finally transferred all 1,000 BTC they held, currently worth up to $60.9 million. It is reported that these wallet addresses marked "16vRqA" and "1DUJuH" each received an initial deposit of 500 BTC in September 2013 when Bitcoin was worth only $124.
Today, the asset value of these addresses has also grown significantly, with astronomical profit margins of nearly 50,000%. #比特币 #链上活动