After a strong rally over the last week, the cryptocurrency market has entered a sharp correction dropping over 5% and losing over $170 billion in just a few hours. At press time, Bitcoin (BTC) has tanked 6.76% and dropped below $55,000 while Ethereum (ETH) has tanked 5.53% dropping below $4,000 after hitting a new all-time high on Monday, May 10.
Although the market has come under pressure after a massive rally, the on-chain metrics for these world’s two biggest cryptocurrencies show strength.
Bitcoin (BTC) Miners Continue With Further Accumulation
On-chain data provider Glassnode mentions that through April and May, Bitcoin miners have been accumulating BTC. The net miner position for Bitcoin is turning positive showing a strong conviction for holding.
Besides, the current rate of miner accumulation also seems significant. As Glassnode states:
“At a rate of 6,000 BTC accumulated per month (after the halving no less), this suggests miners are HODLing around 22% of the block subsidy issuance over the same period (900 BTC/day x 30-days = 27k BTC/mth)”.
On the other hand, the total balance of BTC at OTC desks has been on a continuous decline throughout 2021. OTC Desks usually carry out large trades from institutional players. Thus, the decline in balance means a large number of coins are moving off the exchange.
Ethereum (ETH) Address Activity and Daily Transactions Spike
Ethereum has enjoyed a mega rally in recent times. This comes on the backdrop of strong institutional buying taking place on Coinbase. With the recent price surge, the address activity on the Ethereum blockchain has also reached a new all-time high.
The improvement in the gas limit for the Ethereum blockchain has also helped to boost the transaction throughput. Last week, the Ethereum network attained a daily ATH of 1.63M transactions. There was a strong 22.% surge over the previous week.
Also, there’s a strong uptick in the overall economic activity of Ethereum over the last few weeks. This includes a surge in factors like total transaction rate, smart contract calls, Uniswap transactions, etc.