Bitcoin’s on-chain transaction activity has taken a hit and the miners are just making 30BTC per day. This is indicative not of reduced demand but a mere shift of interest that is taking place in the market. People now are slowly drifting away from transacting on the bitcoin blockchain and are instead preferring to tokenize their holdings for the DeFi markets or maybe they are just buying more of it.
Glassnode, which is an on-chain data analytics provider has said that the revenue of the miners has reduced, reaching a new 5-month low. Bitcoin blockchain in comparison to its nearest rival Ethereum has been low on the processing of transactions and thanks to this further decline, the fees and the revenue of the Bitcoin miners have also reduced.
The trend that has been surfacing points out that the bitcoin miner revenue is declining clearly indicating that there is an increased disinterest among traders and investors to conduct the transactions on the BTC network. Miners have been experiencing a drop in the activity due to which their revenues are sliding away. One of the major reasons attributed to this has been the severely low volatility levels even after BTC floated above $10,000 for a long time.
Skew’s analysis of the volatility reveals that BTCUSD’s volatility levels have reached 33% in the last one month or so. In the last 10 days, it has registered volatility levels of 27 percent. The price actions realized for Bitcoin has been nothing short of an exciting roller-coaster ride. We saw that in the mid-period this year, the BTC price sped past 12k. Skew said in its Twitter message:
It’s a first to see bitcoin >$10k with realized volatility this low pic
It has further said that the rising disinterest is because people are not interested in trading their bitcoin holdings, rather they are pushing the trade to other avenues so that their BTC could be put to better use and result.
Many data sources suggest that the Bitcoin holders are right now interested and moving towards tokenizing their BTC stash in good numbers because they do not want to miss leveraging the DeFi boom in order to gain profits. Dune Analytics has revealed that the total supply of wrapped bitcoin (Wbtc) on Ethereum has jumped to reach 100,000. As a result, the total value locked in wrappedBTC has shot past the $1 billion targets throughout the month of October. And in the manner, it is increasing it is slowly reaching the $1.25 billion mark.
Source: Dune Analytics
It is the third most popular avenue only preceded by Uniswap and Maker. IntotheBlock that uses machine learning to arrive at significant blockchain data points, notes that wrappedBTC has experienced explosive growth throughout 2020. This can actually be seen from the chart above.
This is the third most popular trend for investing followed by Uniswap and Maker. WrappedBTC growth cannot be missed because as per the chart above, the supply has reached a maddening level of increase, and as per the graph below the total USD value locked in WBTC has to inch towards $1.25 billion.
Source: DeFi Pulse