Bitcoin (BTC) and Ether (ETH) appear to be experiencing something of a slowdown, as on-chain data shows a dramatic decrease in the U.S dollar value of coins being sent across both blockchains in the past week. At the same time, transaction fees for both chains have receded from recent highs, or in Ethereum’s case, an all-time high.
Data from Bitinfocharts shows $46.68 billion worth of BTC was sent across the Bitcoin blockchain on Feb. 25. For some context, that’s around 5% of the total Bitcoin market cap, which stands at $925 billion at time of writing.
Bitcoin sent in U.S. dollars. Source: Bitinfocharts.com
By three days later, on Feb. 28, the U.S. dollar value of Bitcoin being sent had fallen to $15.38 billion — a 66% drop off. At the same time, the average transaction fee for Bitcoin users fell by 53% — from $31.47 to $14.63. For context, the highest average fees ever recorded for Bitcoin came in December 2017 when BTC fees exceeded $55, marking the end of the coin’s bull run for that period.
Bitcoin average transaction fee. Source: Bitinfocharts.com
Over on Ethereum, the slowdown was equally pronounced. In the four days between Feb. 23–27, the total value of coins sent across the Ethereum blockchain fell 65% from $11.1 billion to $3.84 billion.
Ether sent in U.S. dollars. Source: Bitinfocharts.com
Meanwhile, average Ethereum transaction fees, which had soared to an all-time high of $38.21 by Feb. 23, dropped 70% down to $11.21.
Ethereum average transaction fee. Source: Bitinfocharts.com
The average fee statistic can often be misleading, as it is heavily weighted by the mass of large transactions that incur super-high fees. The typical Ethereum user may be more interested in the median transaction fee value, which also fell 72% down to $5.23. For context, the recommended fee for making a “rapid” Ethereum transaction is currently around $2.80 according to GasNow.org.
Such a sizable slowdown in activity on both blockchains could be interpreted by some as a sign that the current bull run is grinding to a halt. Yet a glance at the recent history of both chains shows that such pullbacks are not uncommon.
In January, the dollar value of Bitcoin transactions fell 72% over a two-week period, before picking back up again to soar even higher in February. Likewise, the average Bitcoin transaction fee dropped 58% in the same time period. The same general pattern was observed on Ethereum.
With this in mind, it is in all likelihood too early to assume that the current slowdown is indicative of the end of the crypto bull run, at least based on these metrics alone. Indeed, in the seven days since these metrics bottomed out, they have since begun to rise once more, as the ebb and flow of the cryptocurrency market continues.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
![Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/Ripple_Coin_31_02_XtraSmall.jpg)
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
![Bitcoin price falls amidst German government transfers, miners activity](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bit-coin-symbol-flag-3d-illustration-59931110_XtraSmall.jpg)
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
![Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/Bitcoin_2_XtraSmall.jpg)
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
![Three reasons why altcoins could shake off losses this week](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
![Bitcoin: BTC price correction could end in July, according to seasonal data](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.