Bitcoin (BTC) and Ethereum (ETH) Chain Activity Takes Big Hit, USD Compromise Drops 60%

In the last 48 hours, the total crypto market has dropped more than 10% and 25% in the last week. Bitcoin (BTC) and Ethereum (ETH) have undergone serious price corrections during this period and are going with on-chain activity this time down sharply. Active addresses on the chain for Bitcoin and Ethereum dropped to previous year levels in June 2020. Most of this decline comes during the rapid price corrections last month. In the period from March to early May 2021, Bitcoin address activity peaked at 1.16 million. Now it has recently dropped 24% to 884,000 addresses. On-chain data provider Glassnode states that the decline is even more severe for Ethereum, at 30%. From the highest active addresses of 676K/day, active Ethereum addresses dropped to 474K per day. Courtesy: Dramatic decline in Glassnode USD network settlements Looking at USD settlements on the Bitcoin and Ethereum blockchain, the drop in activity looks even more dramatic. USD settlements of the Bitcoin network fell 64% from the May peak, while USD settlements of the Ethereum network fell 68%. The Bitcoin network currently charges $18.3 billion per day, while the Ethereum network currently receives $5 billion per day. Courtesy: Glassnode We know that with the recent crackdown by Chinese authorities, the BTC network hash rate has also recovered by 40% from its peak in May 2021. However, this also led to less network congestion, resulting in block withdrawals and lower transaction costs. reduced. Total fees paid to the network fell to levels last seen in late 2019 and early 2020. Similarly, the network's revenue for Ethereum dropped to just 1.9k ETH from 15,000 ETH/day last month. The drop also comes amid the sharp drop in DeFi activity. During the recent market movement, long-term holders created a large supply and even held unrealized losses. Also a short vacation

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