Bitcoin Network Activity and Value Slide While Runes Minting Market Maintains Profitability
Summary:
Bitcoin's network shows a significant reduction in average block size and transaction rates, with BTC value declining to around $64,100. This is attributed partly to the halving event that cut miners' rewards, affecting network activity and profitability. Despite this, the Runes minting market continues to display profitability. Future predictions indicate a continued market correction, as Bitcoin edges closer to retesting specific resistance points.
There's been a marked decrease in the average block size and transaction rates within Bitcoin's network, corresponding with its downswing to approximately $64,100. The reduction in block size, which quantifies the transactional data contained in each block, signals a marked decrease in activity in the Bitcoin (BTC) blockchain. As of June 7th, it hit a low for the year. The transactional rate per second (TPS) on the network also saw a simultaneous drop in June, indicating a slowdown in activity and the potential diminishing profitability for miners due to the cut in BTC rewards post-halving.
The impacts of BTC halving in April slashed miner's block rewards by half, thereby reducing profits and the incentive to contribute to the blockchain’s activity. In June, the TPS highs reached around 28, with lows dipping below 4.5. As of the reporting time, the average TPS stands at 9.12 TPS.
Despite the current state of the BTC blockchain, the performance of the Runes minting market provides additional insights into the Runes ecosystem and the network at large. As per a post by Leonidas' X dated June 19, the Runes minting market continues to be lucrative, with sustained high user activity on the BTC blockchain.
The secondary market performance for the top 10 biggest Runes mint mints fluctuated significantly, with lows of -82.76% and highs of +1,194.42%, indicating sustained robust market activity.
The recent downturn in price and the coinciding decrease in network activity could be indicative of an approaching extended correction.
Crypto analyst Rekt Capital recently spoke about a potential ongoing correction of BTC forming “clusters of price action near the Range High resistance at approximately $71,600.” According to an analysis on June 17, BTC was nearing a retest of the $64,000 and $62,500 markers—areas identified as Daily Chicago Mercantile Exchange (CME) Gaps. These gaps reference spots on the price chart where significant price differences between closing and opening on successive days can be observed.
Published At
6/19/2024 2:14:00 PM
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