The number of transactions on the Bitcoin (BTC) network has increased dramatically in the past week, with blockchain analytics firm Glassnode suggesting that these transactions are ‘urgent’ due to lower risk for investors.
A sudden influx of 42,800 transactions rocked the hot mempool on bitcoin last week. According to chief analyst Glassnode, these are probably “urgent” transactions due to the high amount of fees paid per transaction. Average fees hit $ 2.72 last week, about 15% higher than average, according to BitInfoCharts, a data tracker on a chain. The findings were reported in Glassnode’s “Week On-chain” report on Monday.
Tae #Bitcoin The market saw an extremely volatile week, with prices trading down to $ 33.8k, and an additional 10% of the network falling in losses.
We analyze market reaction across mempool supply shifts, exchanges, derivatives and stable. https://t.co/WDuzlObVxK
– glassnode (@glassnode) May 9, 2022
The #Bitcoin market had a very volatile week, with prices falling as low as $ 33,800, and another 10% network loss. We analyze market reaction across mempool supply shifts, exchanges, derivatives and stable. https://t.co/WDuzlObVxK. – glassnode (@glassnode) May 9, 2022
an mempool of a blockchain network is where transactions are sent before they are confirmed in a blockchain. The higher the fees paid for a transaction, the more likely it is to be selected in front of others.
Glassnode wrote that investors who paid higher than average fees probably prioritized their offers to reduce the risk of their portfolios or add collateral to their margin positions, as the price of BTC has fallen 19% in the last seven days. Just over 15% of fees paid for transactions on a chain correlation with stock market deposit rates. These were only this high in May 2021, during another period of heavy liquidation.
BTC inflows into the exchanges exceeded inflows for most of 2022. However, that changed last week as there were more than $ 50 million more inflows than outflows. Glassnode said that such total exchange-related volume only exceeded last October and November and matched the 2017 bull market peak in late December and early January 2018.
Glassnode also noted that BTC accumulation has been a low trend since mid – April. Over the past week, the “shrimp”, which have less than total bitcoin, have been the largest piles of any purse cohort (including whales), but their accumulated strength was weak even compared to months earlier this year.
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The distributors, or largest sellers, were those in the largest cohort, with at least 10,000 coins. According to Glassnode, the distribution is greater than the accumulation for most of 2022. However, the largest piles are found in the cohort of those with less than one BTC and those with 10.
Given the high fees they face as well as the urgent urge of investors to try to leave more volatile jobs, the bitcoin market appears to be continuing its rocky path to capitalization, as Cointelegraph reported Tuesday.