Market Overview
The Bitcoin market has suffered significant volatility this month, with Bitcoin selling off after reaching $63,445 and dropping as low as $48,946. There is no shortage of multiple rumors in the market trying to explain this volatility, such as the mismatch between expectations and reality of the Coinbase IPO, the 40%+ drop in mining hash rates, the multi-billion dollar liquidation, and reduced leverage, and more. This week, we will evaluate the data behind these explanations. Also, we’ll explore the new, accelerating trend that may have been initiated by the entry of up-and-coming forces, primarily retail investors, into the Bitcoin market.
Despite the weak price performance, on-chain data shows that hoarders continue to hold older coins. Also, it shows that miners have started accumulating bitcoins again, and most of the trading demand is coming from short-term holders. On-chain transaction volume and fees are at all-time highs, while the typical coinage of coins sold has fallen back to its lowest level since $20,000. Overall, this correction has largely impacted relatively new market entrants, but strong hands remain strong.
New coin hoarders are shaken off the bus
By surveying the age bands of coins sold, we can form a view of the typical age bands of coins sold last week. As seen, Bitcoins with a coinage of 1 month or older represent a small and decreasing share of the total volume. Conversely, the number of Bitcoins with a young coinage (those less than one week old) ended the week with an uptick and suggesting that new market entrants were shaken out during this correction.
Notably, Bitcoin with a coinage of 6 months or older (purple) has seen no meaningful increase in selling since the February correction. Examples of similar selling behavior were observed on the chain during the December 2020 consolidation, just before Bitcoin broke out to new highs, and during the first bull correction in January.
Supply of stable coins minted reaches all-time high
Stablecoins have become a fundamental asset and preferred underlying pair across the cryptocurrency industry, and they provide access to fiat currency native to global cryptocurrencies. The minting of Tether (USDT), the world’s largest stablecoin, reached a new all-time high this week due to strong demand for the centralized issuance of the coin.
Tether’s uncashed supply increased by $1.48 billion this week, for a total mint volume of more than $51.78 billion.
Gas Fee and Uniswap
Recently, the average gas fee for Ether was well above 100Gwei and remained so for some time, and this week the fee has dropped significantly. Currently, the average gas fee is around 60 to 75 Gwei, indicating that the reduction in transaction costs for Ether users is welcomed by users. The main driver for the gas fee reduction is that miners increased the gas cap from 12.5M to 15.0M, and this upgrade allows each block to contain more transaction data.
Recently, UniSwap V3 was officially launched, and the total lock volume of Uniswap has exceeded USD 500 million, with a 24-hour trading volume reaching USD 4.094. In addition, according to official Uniswap Info data, Uniswap V3 24-hour trading volume to lock volume ratio reached 75.03%, far exceeding V2’s 19.57%. However, the promised reduction of Gas fees in Uniswap V3 has fallen through, and the cost of processing transactions in the main Uniswap V3 network is much higher than V2, consuming 102% more than V2 on average.
TitanSwap Delivery
This month Titan launched the cross-chain bridge feature, which is the first step of TitanSwap as a cross-chain transaction, now you can transfer TITAN from the Ether chain to the Binance Smart Chain across. In the future, more tokens will be freely converted to the Binance Smart chain through Titan Bridge, which is the best way to transfer assets in TitanSwap safely and quickly. Meanwhile, TitanSwap will create a hub for cross-chain transactions, using UniSwap, SushiSwap, Curve, PancakeSwap, Ellipse, etc. help users Realize one-click cross-chain transactions of assets on different chains.
TitanSwap will trade spot cross-chains and derivatives on ETH, Binance Smartchain and other blockchains with the best price and lowest slippage, and be able to get a smooth trading experience.
Of course, there are still a lot of innovations that deserve our attention, and we’ll be expanding the deal to Polkadot, Solana, and other Layers2 in the future. Each of these technologies is not a complete reversal of the past, and TitanSwap continues to iterate on the shoulders of other Dexes, so we look forward to seeing you in the next version soon!
