Bitcoin on-chain activity grows despite downward trend

Bitcoin is currently trading around $19,000 after hitting a new two-month low for the digital asset. The price drop shows a lack of enthusiasm for the digital asset, despite it being the largest in the sector. Despite the downward trend that brought it to this level, on-chain activity is increasing. The recovery in some metrics shows a complete divergence from the price and network activity.

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Bitcoin hashrate is growing and creating new ATHs

Bitcoin hashrate has seen one of the biggest recoveries in the past week. There was some decline in BTC hashrate last week, but it has rebounded rapidly this year. The hashrate has climbed above 225 EH/s, bringing it incredibly close to breaking the current all-time high of 231 EH/s.

The block production rate has clearly increased with the increase in hashrate. With 6.64 blocks generated per hour in the previous week, the network experienced the second largest mining difficulty adjustment of the year, at 9.3 %. The adjustment brought the block production rate down to 6.2, close to the target of 6.

This week's hashrate surge comes as temperatures in regions across the United States begin to normalize, prompting Bitcoin miners who previously took their operations offline due to the energy crisis to come back online, bringing their hashrate.

The average transaction per block also increased during this time, from 1,647 transactions the previous week to 1,868 transactions last week, an increase of 2.37 %.

Other metrics in green

BTC mining hashrate wasn’t the only thing that saw a green light this week. Other metrics saw even bigger increases during the week. The biggest increase was in fees per day, which increased the percentage of miner revenue generated by fees. The 31.95 % increase means fees per day are up from $209,577 to $276,538. This increased fee revenue by 0.46 % from 1.01 % the previous week to 1.47 %.

Daily transaction volumes rose by 23.32 % last week, while average transaction values rose by 20.47 % from $11,422 to $13,760. Transactions per day were also in the green this week, coming in at 251,018, up 2.37 % from the previous week.

Despite the sea of green seen last week, daily BTC miner revenue has fallen. A change of -9.54 % has caused miner revenue to drop back to $18 million. Another metric that saw red this week was the number of blocks mined, which fell by 6.63 % from 6.64 to 6.2.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.