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bitcoin

Bitcoin Network Activity Has Stalled While It Has Fallen On Ethereum: Citi Report

Ash Tiwari
by Ash Tiwari
9 months ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Network activity on the Bitcoin (BTC) blockchain seems to have stalled while it is dwindling on Ethereum (ETH), a report by Citi says.

Network Activity Lukewarm On Bitcoin And Ethereum

One of the key metrics used to ascertain user interest in a blockchain project is the measurement of its network activity. High network activity – unless propped up by trading bots – typically signals more users are transacting on the underlying blockchain network, enabling block miners to earn more rewards for confirming transactions. However, the vice-versa doesn’t paint as encouraging a picture.

According to a report by Citi, the activity of the Bitcoin network seems to have stalled. Data from blockchain.com confirms Citi’s assessment. From the chart presented below, we can see that the number of confirmed transactions per day on the Bitcoin network seems to be oscillating in a range since April 2024. 

bitcoin
Source: Blockchain.com

At the same time, BTC prices have steadily been trending downwards, making lower highs after each rebound from range lows of around $56,000.

Pivoting to Ethereum data, we see a similar trend. The Ethereum daily transactions chart shows a slight decline in daily transactions, from approximately 1.37 million on March 19, to 1.12 million on September 5.

Related Reading: Ethereum Network Activity Crashes, Transaction Volume Down To A Five-Month Low
Source: Etherscan.io

Network activity on any blockchain is largely dependent on the number of users or unique wallet addresses used on the concerned network. Looking at unique addresses used on the Bitcoin network, we see that it is down to 539,154 addresses on September 4, 2024, from 1,017,545 addresses on September 14, 2023. Interestingly, the number of unique addresses on Ethereum has remained steady.

However, it’s worth highlighting that sometimes, many users may have more than one wallet address, which might slightly reduce the reliability of this data point.

Adding, the report says that Bitcoin and Ethereum exchange-traded funds (ETFs) have witnessed net outflows, indicating weak conviction among investors to hold digital currencies during economic uncertainties. Specifically, Bitcoin ETFs experienced outflows to $305 million on August 31, 2024.

Crypto Market To Remain Highly Correlated With Stock Market

The report by Citi notes that the digital assets market is expected to remain highly correlated with equities. In contrast, however, a recent post by Santiment on X stated that Bitcoin is becoming less sensitive to trends in the stock market and, over time, could finally decouple from it. 

Related Reading: Bitcoin Correlation With Dollar Index & Stocks Has Disappeared: Data

That being said, Bitcoin permabulls like Michael Saylor, CEO of MicroStrategy, continue to place their bets on the leading digital currency. Recently, it came to light that Saylor had pocketed approximately $400 million on the back of planned daily sales of about 5,000 MicroStrategy shares.

At press time, Bitcoin trades $54,097, down by 3.3% in the last 24 hours. Ethereum is trading at $2,292, down by 3.2% in the same duration.

Bitcoin continues to trend down on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Charts from Blockchain.com, Etherscan.com, TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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