{"id":6533,"date":"2022-08-29T18:54:29","date_gmt":"2022-08-29T22:54:29","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=6533"},"modified":"2022-08-29T18:54:29","modified_gmt":"2022-08-29T22:54:29","slug":"holders-accumulate-blockchain-activity-decreases-in-both-bitcoin-and-ethereum","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2022\/08\/29\/holders-accumulate-blockchain-activity-decreases-in-both-bitcoin-and-ethereum\/","title":{"rendered":"Holders Accumulate, Blockchain Activity Decreases In Both Bitcoin And Ethereum"},"content":{"rendered":"

In bear markets, holders accumulate showing unwavering faith. The other side of that is a decrease in the \u201cwillingness to spend\u201d or use the assets. The latest Intotheblock report<\/a> \u201chighlights the diverging pictures between on-chain demand and accumulation of the largest two crypto-assets.\u201d Some people still have trouble admitting we\u2019re currently in a bear market, but the signs are everywhere.<\/p>\n

Why would you move your money if your goal is to accumulate? It doesn\u2019t make sense. The whole situation Intotheblock describes, though, makes all the sense in the world.<\/p>\n

Signs Of Blockchain Activity Decreasing<\/p>\n

According to the report, this month had \u201cthe lowest on-chain activity in years.\u201d Let\u2019s examine the indications that Intotheblock identified, and then we\u2019ll get to holders and their need to accumulate.<\/p>\n

\u201cNetwork fees for Bitcoin and Ethereum reached multi-year lows.\u201d<\/p>\n

This is one of the clearest and easier-to-determine indicators. Especially in Ethereum, since that blockchain\u2019s main characteristic is that fees rise with usage. At the moment, the NFT market is stale and DeFi activity is not what it used to be. Plus, it seems like a good time for holders to accumulate what they can.\u00a0<\/p>\n

\u201cNetwork fees paid to use Ethereum reached their lowest in two years.\u201d<\/p>\n

Since the controversial EIP-1559 passed, Ethereum burns a portion of the gas fee from every transaction. If people aren\u2019t using the network as much, the burning decreases but the issuance stays the same. \u201cAt these fee levels, Ether would be inflationary even following the merge\u2019s 90% issuance reduction,\u201d Intotheblock informs.<\/p>\n

\u201cBitcoin recorded modest outflows from centralized exchanges, while Ether saw relatively larger amounts of nearly half a billion being withdrawn.\u201d<\/p>\n

This indicator is usually called \u201cExchanges Netflows\u201d and refers to \u201cthe net amount of inflows minus outflows of a specific crypto-asset going in\/out of centralized exchanges.\u201d Both bitcoin and ether are flowing out of the exchanges and into cold storage, \u201ca pattern that had occurred on previous bear markets.\u201d<\/p>\n\n

ETH price chart for 08\/29\/2022 on Coinbase | Source: ETH\/USD on TradingView.com<\/a>
\nHolders Accumulate, Is It Because The Merge Is Coming?<\/p>\n

The transition from Proof-Of-Work to a Proof-Of-Stake consensus mechanism will be a monumental change for the Ethereum network. Crypto people are evidently interested in the merge, in fact, it was the main driver for ether\u2019s high performance of late. The rest of the population, though, seems to be unaware of it.\u00a0<\/p>\n

\u201cNew addresses created on Ethereum reached their lowest levels since 2020 before DeFi summer.\u201d<\/p>\n

New users don\u2019t know about the merge, so they\u2019re not flocking to Ethereum to try to make a buck through the highly-anticipated transition. Or flocking to Ethereum in general.\u00a0<\/p>\n

\u201cIn spite of the upcoming milestone, relatively few people are searching for Ethereum.\u201d<\/p>\n

While holders accumulate, search intention for \u201cethereum\u201d is as low as all the other indicators. This isn\u2019t necessarily a bad sign, we\u2019re in a bear market after all. It speaks of the low importance that the merge has for the general population, though.\u00a0<\/p>\n

Holders Accumulate In A Big Way<\/p>\n

Why does Intotheblock\u2019s report focuses on ethereum in the \u201cblockchain activity decrease\u201d part and on bitcoin in the \u201cholders accumulate\u201d part? It\u2019s curious, to say the least. \u201cThe consistent accumulation in bear markets reflects the strong commitment and long-term conviction many holders have in crypto,\u201d the report says. Even though the data they pulled concerns bitcoin only.<\/p>\n

\u201cHodlers\u2019 balance reached a new high of 12.92 million BTC.\u201d<\/p>\n

That\u2019s right, an ever-increasing number of BTC is in people with high conviction\u2019s hands. The implications this might have on the future price of the only scarce coin can\u2019t be overstated.\u00a0\u00a0<\/p>\n

\u201c60% of all Bitcoin now owned by addresses that have been holding for over a year.\u201d<\/p>\n

Another stat, same message. Holders accumulate, but bitcoin hodlers are a different breed. A lot of them seem to be all in on this trade. How will this affect bitcoin\u2019s price as supply keeps decreasing halving after halving?<\/p>\n

Featured Image by 3D Animation Production Company<\/a> from Pixabay<\/a> | Charts by TradingView<\/a><\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

In bear markets, holders accumulate showing unwavering faith. The other side of that is a decrease in the \u201cwillingness to spend\u201d or use the assets. The latest Intotheblock report<\/a> \u201chighlights the diverging pictures between on-chain demand and accumulation of the largest two crypto-assets.\u201d Some people still have trouble admitting we\u2019re currently in a bear market, but the signs are everywhere.<\/p>\n

Why would you move your money if your goal is to accumulate? It doesn\u2019t make sense. The whole situation Intotheblock describes, though, makes all the sense in the world.<\/p>\n

Signs Of Blockchain Activity Decreasing<\/p>\n

According to the report, this month had \u201cthe lowest on-chain activity in years.\u201d Let\u2019s examine the indications that Intotheblock identified, and then we\u2019ll get to holders and their need to accumulate.<\/p>\n

\u201cNetwork fees for Bitcoin and Ethereum reached multi-year lows.\u201d<\/p>\n

This is one of the clearest and easier-to-determine indicators. Especially in Ethereum, since that blockchain\u2019s main characteristic is that fees rise with usage. At the moment, the NFT market is stale and DeFi activity is not what it used to be. Plus, it seems like a good time for holders to accumulate what they can.\u00a0<\/p>\n

\u201cNetwork fees paid to use Ethereum reached their lowest in two years.\u201d<\/p>\n

Since the controversial EIP-1559 passed, Ethereum burns a portion of the gas fee from every transaction. If people aren\u2019t using the network as much, the burning decreases but the issuance stays the same. \u201cAt these fee levels, Ether would be inflationary even following the merge\u2019s 90% issuance reduction,\u201d Intotheblock informs.<\/p>\n

\u201cBitcoin recorded modest outflows from centralized exchanges, while Ether saw relatively larger amounts of nearly half a billion being withdrawn.\u201d<\/p>\n

This indicator is usually called \u201cExchanges Netflows\u201d and refers to \u201cthe net amount of inflows minus outflows of a specific crypto-asset going in\/out of centralized exchanges.\u201d Both bitcoin and ether are flowing out of the exchanges and into cold storage, \u201ca pattern that had occurred on previous bear markets.\u201d<\/p>\n

ETH price chart for 08\/29\/2022 on Coinbase | Source: ETH\/USD on TradingView.com<\/a>
\nHolders Accumulate, Is It Because The Merge Is Coming?<\/p>\n

The transition from Proof-Of-Work to a Proof-Of-Stake consensus mechanism will be a monumental change for the Ethereum network. Crypto people are evidently interested in the merge, in fact, it was the main driver for ether\u2019s high performance of late. The rest of the population, though, seems to be unaware of it.\u00a0<\/p>\n

\u201cNew addresses created on Ethereum reached their lowest levels since 2020 before DeFi summer.\u201d<\/p>\n

New users don\u2019t know about the merge, so they\u2019re not flocking to Ethereum to try to make a buck through the highly-anticipated transition. Or flocking to Ethereum in general.\u00a0<\/p>\n

\u201cIn spite of the upcoming milestone, relatively few people are searching for Ethereum.\u201d<\/p>\n

While holders accumulate, search intention for \u201cethereum\u201d is as low as all the other indicators. This isn\u2019t necessarily a bad sign, we\u2019re in a bear market after all. It speaks of the low importance that the merge has for the general population, though.\u00a0<\/p>\n

Holders Accumulate In A Big Way<\/p>\n

Why does Intotheblock\u2019s report focuses on ethereum in the \u201cblockchain activity decrease\u201d part and on bitcoin in the \u201cholders accumulate\u201d part? It\u2019s curious, to say the least. \u201cThe consistent accumulation in bear markets reflects the strong commitment and long-term conviction many holders have in crypto,\u201d the report says. Even though the data they pulled concerns bitcoin only.<\/p>\n

\u201cHodlers\u2019 balance reached a new high of 12.92 million BTC.\u201d<\/p>\n

That\u2019s right, an ever-increasing number of BTC is in people with high conviction\u2019s hands. The implications this might have on the future price of the only scarce coin can\u2019t be overstated.\u00a0\u00a0<\/p>\n

\u201c60% of all Bitcoin now owned by addresses that have been holding for over a year.\u201d<\/p>\n

Another stat, same message. Holders accumulate, but bitcoin hodlers are a different breed. A lot of them seem to be all in on this trade. How will this affect bitcoin\u2019s price as supply keeps decreasing halving after halving?<\/p>\n

Featured Image by 3D Animation Production Company<\/a> from Pixabay<\/a> | Charts by TradingView<\/a><\/p>\n

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