What’s Happening on the Bitcoin Network Amidst The Red Hot Market?
Miners are reaping the fruits of rising BTC price and fees as blockchain activity continues to ramp up.
Bitcoin continues to smash new record highs, the latest one being $35k and nearly $36k. But this has just started and we have a long way to go.
This ATH came after the market had a 20% pullback on Monday providing a ‘buy the dip’ opportunity. “A large pullback of 20% – 30% should be expected, even in a bull market,” noted Arcane Research.
And this drop has been the result of sky-high funding rates and of course an overly confident market that led to $1.2b worth of longs getting liquidated in the BTC futures market — by far the largest daily liquidation since BTC started moving a few months ago.
After normalizing, these funding rates have started rising back up already.
What’s just as interesting is the activity the largest crypto network has been seeing.
This price action has actually been on the back of the strong volume. Leading spot exchanges crushed all the previous records by having three days with over $10 billion in volume.
“$80+ billion in trading volume in the last 24 hrs on Binance. ATH x 2!” resulting in scaling issues, noted the CEO of leading spot exchange, Changpeng Zhao.
In terms of blockchain activity, Bitcoin active addresses grew by 9.3% week-over-week to start 2021, averaging over 1.1 million per day. These addresses are actually near all-time highs.
On January 3rd, the 7-day average reached 1.15 million, just shy of the all-time high of 1.18 million set in December 2017. The number of hourly active addresses (24h MA) actually just hit a new ATH.
Network security continues to look strong as well with the hash rate growing by 11.7%, again reaching for a new all-time high.
Bitcoin miners are currently enjoying revenue of $33 million per day, as per data source Glassnode. This has been thanks to the rising BTC prices and the average Bitcoin fees that have yet again surged to $11, moving up since Dec. 13.
Between the last halving and October, the average daily revenue was at around $10 million. It has only been within 5 weeks in late 2017 that this number has been higher.