July 24, 2024
Bitcoin News

Bitcoin Network Faces Decline in Block Size and Transaction Rates

The Bitcoin network has experienced a significant decline in its average block size and transaction rates, coinciding with a price drop to around $64,100. The reduction in block size, a measure of transaction data in each block, indicates a sharp fall in Bitcoin blockchain activity, hitting a yearly low on June 7.

The network’s transaction per second (TPS) rate also declined in June. This reflected reduced activity and potentially lower miner profitability due to decreased post-halving BTC block rewards.

Impact of Bitcoin Halving

The Bitcoin halving event in April reduced block rewards by 50% for miners, decreasing profits and incentives to contribute to the blockchain’s activity. TPS rates have fluctuated, reaching highs of around 28 TPS and lows below 4.5 TPS in June. The average TPS is 9.12 TPS. Even with the BTC blockchain’s current status, the Runes minting market offers more information about the ecosystem and network efficiency.

Runes Minting Market Remains Strong

The Runes minting market is still profitable, according to a June 19 X post from Leonidas. This suggests that user activity on the BTC blockchain is still rather active. The secondary market performance of the top 10 largest Runes mints has varied significantly, from as low as -82.76% to as high as +1,194.42%. Thus, showing robust market activity.

Future Corrections Anticipated

The recent price drop and coincidental fall in network activity could signal the start of a prolonged correction. Crypto analyst Rekt Capital discussed the potential for continued BTC correction. It noted the formation of “clusters of price action near the Range High resistance at ~$71,600.”

On June 17, the analyst stated that Bitcoin was “getting very close” to retesting the daily Chicago Mercantile Exchange gaps, which are $64,000 and $62,500. These gaps represent areas where noticeable differences can be seen between the closing price on one day and the opening price the following day.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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