23 May 2022

Bitcoin on-chain summary: Falling on-chain activity

After briefly hitting elevated levels following the Luna collapse, on-chain activity has now fallen back to more "normal" levels.
The Luna collapse led to a surge in on-chain activity as traders scrambled to get out of the market. In addition, some crypto exchanges restructured their wallets, leading to a massive increase in the daily on-chain transaction volume.Last week's wallet restructurings led to an enormous average transaction size, which has now collapsed by 44%. This has almost halved the daily transaction volume.All of this suggests a substantially lower demand for making on-chain transactions, and as a result, the transaction fees per day have plummeted by 33%.
Screenshot 2022-05-24 092847
Source: Bytetree
The low bitcoin price combined with difficulty sitting at an all-time high has led the block production rate to fall to 5.64 blocks per hour, far below the target of 6.The slow block production rate combined with the low bitcoin price has led to an 8% decline in daily miner revenues, now sitting at $25.5 million - the lowest since July 2021.Miner revenues will likely see a slight rebound after the next difficulty adjustment tomorrow, which will reduce the difficulty by between 4 and 5%, highly welcomed by the bitcoin miners.
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