Many important indicators of Bitcoin and Ethereum dropped severely.
In the past 48 hours, the crypto market capitalization is down more than 10% and down 25% from last week.
In which, Bitcoin price dropped 22% to $31,700, Ethereum lost 27% of its value, currently trading around $1,880.
The cryptocurrency market plunge was accompanied by a sharp drop in on-chain activity.
On-chain active addresses for Bitcoin and Ethereum fell to June 2020 lows. Much of this drop was traced back to the May 19 correction.
From March to early May 2021, Bitcoin address activity peaked at 1.16 million. This is now down 24%, to 884k active addresses.
Ethereum’s drop was even worse with 30%, from 676k/day to 474k/day.
Bitcoin and Ethereum Network USD Payments Consecutively Falling
If you look at USD payments on the Ethereum and Bitcoin blockchains, the decline is even bigger.
The Bitcoin network’s USD payments are down 64% from their May peak, while that of the Ethereum network is down 68%.
Bitcoin network currently processes $18.3 billion per day, Ethereum processes $5 billion per day as of now.
After China decided to “chase” crypto miners, the Bitcoin hashrate dropped by as much as 40% from the peak of May 2021.
However, the lack of active miners also helps to reduce network congestion, thereby reducing block costs, including transaction fees.
Total fees paid to the network dropped to the lows of late 2019 and early 2020.
On the Ethereum side, the network’s fee revenue dropped from 15k ETH/day last month to just 1.9k ETH at press time.
Of course, when on-chain activity on Ethereum plummets, DeFi will inevitably drop.
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