Despite Memecoin Mania, Bitcoin Users Record High Activity In May
Data from many authority sources show that during the Memecoin Mania in May, the number of active Bitcoin users, fees, and transactions went through the roof. According to data from brc-20.io, the total market value of meme coins issued on the new BRC-20 token standard for Bitcoin has now significantly decreased to roughly $475 million.
BRC-20 meme coins have a market cap that once exceeded $900 million. It was discovered that the market for meme coins has slowed down, and many investors have moved on to other types of investments after realizing profits.
It was gathered that it witnessed a sharp drop in Bitcoin fees sometime in May. According to information from Bitinfocharts, costs were around $14 per transaction at the beginning of the month before the prices in Bitcoin fees dropped sharply to just $4, a decrease of more than 70%.
The number of variables, including a fall in demand for Bitcoin transactions and an improvement in network efficiency, are likely to be responsible for the decrease in costs. The reduction in the number of transactions has been linked to the decline in the meme coin frenzy, which was said to have subsided because of the declining investor interest in using Bitcoin to buy and sell meme coins.
Bitcoin Popularity Linked To The Increased Activities In The Transaction
The number of Bitcoin transactions increased in May despite the drop in fees. The Block reported more than 10 million Bitcoin transactions in May, and a record-high amount. According to data from The Block, the total amount represented a 52% rise from April and more than twice as many transactions as in May of the previous year.
Increased use of Bitcoin as a payment method and the rise in popularity of decentralized finance (DeFi) applications created on the Bitcoin network are two variables believed to have contributed to the spike in Bitcoin transactions.
The demand for Bitcoin transactions is set to increase in the upcoming months and years as DeFi keeps expanding. While commenting on the development, analysts say that the price and transaction volatility of Bitcoin in May served as a stark reminder of the market’s turbulence and the difficulty in forecasting its upcoming trends.
Investors Having A Field Day, As Price Propellers Remain Strong
Further investigations into the high Bitcoin activities reveal that many investors remain bullish on Bitcoin and other cryptocurrencies despite this unpredictability because they view them as a potential inflation hedge and a method to diversify their holdings. More analysis from CoinDesk claims that complex financial products and trading tactics are anticipated to emerge as the cryptocurrency market develops, making it simpler for investors to engage.
Industry rumors have it that the fundamental dynamics fueling the rise of Bitcoin and other cryptocurrencies are still very strong, and the popularity of meme coins as of May may have subsided. This happened after Pepecoin (PEPE) had a major movement, producing more millionaires in just a few weeks – while jumping from $0-$2 billion in market valuation.
Research into the activities of Bitcoin shows that very few investors may gain substantial profit, and some others may suffer some losses. But meme coins have created a loop that liquidates the market, giving few cryptocurrencies (including Bitcoin) the opportunity to gain more traction in the market.
On the other hand, amid Bitcoin and Ethereum’s impressive start earlier this year, which has made it hit a strong $30,000 (Bitcoin) and $2,000 (Ethereum) following what the industry traders have termed the “Spring of Shitcoin.”
Meanwhile, the latest report on bitcoin activities says that the price of bitcoin doesn’t fit well with most tech stocks, a trend attributed to the recent 30-day correction. According to the CEO of institutional digital asset platform FRNT Financial Inc. Stephane Ouellette, the ever-changing correction is in connection with the change in the investment strategy and the continuous recognition of cryptocurrency.
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