Bitcoin Utility Grows as the Market Dumps while Luna Crumbles by -99.99%

LUNA, the native token for Terra blockchain crashed -by 99.99% as the blockchain project with one of the strongest and most innovative communities faced one of the most significant meltdowns in the industry’s history. Many investors, VCs and the likes have recorded historic losses and are still licking their wounds. The crypto market dropped sharply as well with Bitcoin testing the lower waters at $27k. The market has been bleeding but on-chain data shows that the current bear market cycle is unique as Bitcoin’s peer-to-peer transactions increase outside the realm of exchanges.

One of the principal aspects of on-chain analysis is to examine and compute live data and transactions over the network. Unlike exchange-involved transactions which often lead to price volatility, transactions outside of exchanges (peer-to-peer) demonstrate the network’s utility as possible payments among users. It makes a positive contribution to the development of the network over the long term if users interact with one another. Therefore, it is essential to examine the number of transactions of a digital asset over the network.

The number of transactions within exchanges’ wallets has been trending lower from the May 2021 peak meaning that there is low exchange activity by traders and not much transfer activity through the marketplace. This is different from the previous price cycles when this number was strongly correlated to the price action.

Meanwhile, the total number of deposits and withdrawals to and fro exchanges has plunged downwards, demonstrating that people may be less engaged in the exchanges. Additionally, the number of transactions from all exchanges to derivatives exchanges have plummeted as a clue that derivatives trades are not very attractive meaning leverage trading has reduced significantly.

In the meantime, there is no further possibility of cumulative selling pressure due to the substantial drop in the number of transactions from all exchanges to spot exchanges. This offers the slightest of encouragement and mitigates bearish sentiment among investors and holders.

Concurrently, the sum count of on-chain transactions has moved up in contrast to the downtrend in exchange-related transactions. It implies an increased supply/demand outside of exchanges, resulting in high usage of the Bitcoin network. With more crypto adoption coming, we might see more on-chain Bitcoin activities in the coming days/ weeks/ months and more stability in price.

#crypto #bitcoin #ethereum #trading #anypad #blockchain

As written by Niranjan Duguta

About Anypad

Anypad is a next-generation blockchain Incubator and accelerator platform building a Multi-chain LaunchPad, Multi-chain AMM DEX, and Blockchain Game, Star Strike. Anypad would give crypto & blockchain startups & investors the best experience as the industry gains full-scale global adoption. Anypad is dedicated to incubating and accelerating the best and most innovative micro-cap blockchain projects, allowing blockchain startups to grow and raise funds seamlessly.

For more information about Anypad, please visit

Website Telegram chat Twitter Medium YouTube

Stay Connected!!!

--

--

--

A next-generation Incubator building a decentralized Multi-chain IDO LaunchPad and Multi-chain AMM DEX on BSC & HECO Chain

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

ANNOUNCING DARKCRYPTO X CRODEX STRATEGIC PARTNERSHIP

Cryptoindex AI Daily Predictions and News for 01/21/2020

OCTOBER HIGHLIGHTS

The last chance to jump in the EmiSwap token sale for early adopters

About the latest crypto crash and our reaction as an upcoming NFT project

Ignite Tournaments Joins Hands with YGG SEA

FTX.com MOVE contracts

Hashing and Digital Signatures

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
AnyPad

AnyPad

A next-generation Incubator building a decentralized Multi-chain IDO LaunchPad and Multi-chain AMM DEX on BSC & HECO Chain

More from Medium

“Bitcoin is in a bear market” but so are stocks and bonds

#1 Twitter Spaces AMA: The Future of Defi with CEO of Fantom and Founder of Atlas DEX

Update Log: May 2022

VLX Is Now Listed on Bitget