Vladislav Sopov
According to the data, Bitcoin (BTC) fees are falling as a market correction is imminent
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Bitcoin (BTC) outflow from exchanges continues as spot ETFs grow in popularity in the US. Meanwhile, the BRC-20 euphoria lost traction by mid-March 2024.
Bitcoin (BTC) Fees Dropped 33%: Main Reason
Bitcoin (BTC), the largest blockchain network, has seen aggregate transaction fees drop by 33.1% over the past few days. Such an estimate was shared by blockchain data analytics platform IntoTheBlock in its latest weekly newsletter.
There has been a significant drop in Bitcoin (BTC) fees due to the decreasing activity of BRC-20 tokens or Bitcoin ordinals. Compared to NFTs on programmable blockchains, these ultra-low-cost tokens contributed to an increase in BTC fees in the third quarter of 2023.
Meanwhile, $700 million worth of BTC has been withdrawn from CEXes as spot ETFs in the US continue to set records. As of March 16, 2024, they have accumulated over $12 billion in liquidity from institutional investors.
Fees for Ethereum (ETH), the second-largest blockchain, hit an annual high for the second consecutive day, with the Uniswap exchange (UNI) leading the way in gas usage.
However, ETH outflow from exchanges – a key indicator of bullish sentiment – lags that of the Bitcoin (BTC) network.
Crypto Correction Is Coming: Indicators from IntoTheBlock
Additionally, analysts shared a number of very alarming signals for Bitcoin (BTC) and altcoin holders. Markets may be overheated as funding rates on derivatives exchanges have risen to multi-month highs.
The funding rates on Binance and Bybit reached values of 0.06% and 0.09%, respectively. APY rates for stablecoin-based investment products also rose, also indicating overheated markets.
The momentum of DeFi lending is sending similar signals: Aave Finance (AAVE) has increased its debt ratio by 114% in the last year.
About the author
Vladislav Sopov
Blockchain analyst and author with a scientific background. 6+ years in IT analytics, 3+ years in blockchain.
Participation in independent analysis and start-ups (Swap.online, Monoreto, Attic Lab etc.)
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
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