Crypto News- In a groundbreaking revelation, The Block’s latest and most comprehensive data analysis has uncovered a profound and unprecedented downturn in the percentage of tokens actively circulating within the intricate tapestry of the cryptocurrency ecosystem, significantly impacting the stalwarts of the digital domain, Bitcoin and Ethereum. The meticulously compiled report paints a vivid picture of these digital giants grappling with a startling plunge in their active supply percentages, descending to record lows over the past year.
Unprecedented Lows: Bitcoin and Ethereum’s Active Supply Reaches All-Time Minimum
Journeying into the historical performance of Bitcoin, the data delineates a compelling dichotomy. During the zenith of its activity from March 2017 to 2018, over 59% of Bitcoin’s total supply was actively changing hands. In stark contrast, the present scenario reveals a mere 30.12% of its supply participating in transactions over the past year. Ethereum mirrors this trajectory, having undergone an extraordinary 86% supply movement between July 2016 and 2017, only to plummet to a historical nadir with a meager 39.15% of its supply changing hands in the past year.
The timing of Bitcoin’s record low in active supply assumes intriguing significance as it aligns with the impending halving of block emission rewards, a highly anticipated event slated for April of the forthcoming year. The Block’s data further weaves the narrative, uncovering that the percentage of tokens untouched for three and five years has likewise plummeted to unprecedented depths. Over the last three years, a mere 58.58% of Bitcoin’s supply has changed hands, signaling a substantial decrease from the over 73% observed at its zenith in late 2019. The five-year active supply has undergone a similar descent, falling from a pinnacle of 83% to the current 70.13%.
Adding a layer of complexity to this unfolding narrative is the simultaneous surge in the supply of inactive coins, which has now scaled to an all-time high. Despite this surge, network transactions are hurtling toward their peak, indicating a dynamic shift in the cryptocurrency landscape. This divergence prompts a cascade of questions, from the evolving strategies of investors to potential external market influences and the intricate interplay of factors shaping the current state and future trajectory of these leading cryptocurrencies. As market dynamics continue their metamorphosis, there arises an imperative need for a deeper analysis to untangle the multifaceted complexities surrounding the active supply trends in the dynamic and ever-evolving crypto space.
Rising Transaction Costs: Bitcoin and Ethereum Networks Experience Increased Fees Amid Surging Cryptocurrency Adoption
Amidst the dynamic surge in cryptocurrency usage, both Bitcoin (BTC) and Ethereum (ETH) networks are experiencing a substantial spike in transaction fees, revealing the evolving landscape of the digital currency realm. BitInfoCharts data unfolds a striking narrative, showcasing the average BTC transaction fee soaring to approximately $10—a remarkable escalation of over 500% compared to the less than $2 recorded earlier this month. It’s worth noting that BTC fees peaked at $18 on October 16 and 18, aligning with a surge in the cryptocurrency’s value and a concurrent uptick in trading volume.
Concurrently, Ethereum gas fees have surged beyond 100 gwei, as reported by EtherScan. Presently, executing a basic swap on the Ethereum network costs users over $60, selling a non-fungible token (NFT) demands approximately $110, and bridging assets requires a fee of $20. CryptoFees data further paints a comprehensive picture, indicating that Bitcoin’s daily fees averaged $10.65 million from November 16 to November 18, surpassing Ethereum’s average fee of $6.9 million during the same period.
Market analysts attribute the recent surge in Bitcoin transaction fees to the resurgence of Ordinal Inscriptions. These digital assets, akin to NFTs but representing BTC’s smallest denomination, satoshis, gained prominence earlier this year, signaling Bitcoin’s entry into the NFT sector. Although interest waned with the evolving market, a revival ensued as these assets expanded to other blockchain networks like Polygon and Litecoin.