On-chain statistics for May paint a mixed picture regarding Bitcoin (BTC) and Ether (ETH) adoption, Goldman Sachs (GS) said in a report on Monday.
Ether balance changes across the different cohort groups remained largely unchanged, but Bitcoin addresses with balances greater than 100,000 BTC saw a 31% monthly decline, the report said.
The Spent Output Profit Ratio (SOPR) for Bitcoin, which indicates the degree of profit realized, saw multiple spikes throughout the month, reaching levels not seen since December 2020, “suggesting that there has been significant profit-taking in spot markets .” said the bench.
The Wall Street giant noted that the amount of bitcoin held on exchanges fell sharply by 12%, while the supply of ether increased slightly.
Network congestion on both the Bitcoin and Ethereum blockchains was also a major issue in May, according to the bank. This caused monthly address activity for Bitcoin and Ether to decline by 13.8% and 16.7%, respectively, as user activity was deterred by higher transaction fees.
The average average bitcoin hash rate continued to surpass its all-time high in May, up 5.4% over the month, with miner revenue up 16.4%, the report added.
Hashrate refers to the total combined computing power used to mine and process transactions on a proof-of-work blockchain like Bitcoin.
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