Bitcoin dominance grows amid rising on-chain activity

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The growth of Bitcoin’s market dominance to 45.6% is accompanied by an increase in on-chain activity. Analysts of the IntoTheBlock resource reported this on their blog. According to their observations, the weekly volume of commissions in the Bitcoin blockchain jumped 32.1% to $ 4.7 million.

Source: medium.com

The Ethereum network, for example, is inferior in percentage growth (26.6%), but in monetary terms it significantly outperforms the bitcoin blockchain ($ 242.5 million). The rise in commission costs reflects investor interest in blockchain networks, analysts write.

The number of Bitcoin hodlers has also increased. Over the past week, exchanges recorded an outflow of the largest cryptocurrency in terms of capitalization in the amount of $ 100 million.However, in the case of ETH, exchanges, on the contrary, registered an influx of cryptocurrency worth $ 306 million.According to IntoTheBlock, the withdrawal of bitcoin from trading floors may indicate the interest of investors in long-term storage.

Source: medium.com

Large transactions in the cryptocurrency network also played into the hands of Bitcoin’s dominance. For example, on October 7, the number of large on-chain transactions (over $ 100,000) reached a four-month high. Then, for several days, users sent $ 240 billion per day.

According to experts, such a high activity of large transfers can be explained by the recent news that the family office of billionaire George Soros has invested in bitcoin. Rumors about the possible approval of the exchange-traded bitcoin fund also play on investors’ optimism. Recall, according to strategists at Bloomberg, Bitcoin ETF can get approval US regulators as early as October.

The growth in demand in the bitcoin market was previously reported by Glassnode. They noticed that since the beginning of October, the number of daily active wallets on the bitcoin blockchain has jumped 19% to a level of 219,000.

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