We’re definitely in a bear market and investors understood this. While a lot of people are freaking out about the idea, it’s important to understand that this is a great time for accumulating digital assets.
Certain on-chain indicators suggest the crypto market’s current downtrend may not end up being as brutal as past bear markets, according to Lucas Outumuro, head of research at analytics firm IntoTheBlock.
In a new analysis, Outumuro acknowledges that it’s getting “harder and harder to argue we are not in a bear market.”
It’s important to mention the fact that the total crypto market cap is down 57% its all-time high of about $3.07 trillion, which it hit last November, Outumuro explains the fact that fundamental indicators have dipped less compared to previous bear markets.
“As a high portion of demand comes from speculation, it is normal for transaction fees to plummet severely as trading sentiment dwindles through bear markets. Remaining at higher levels, however, suggests stickier demand.”
The analyst also said:
“Bitcoin has been averaging above $500,000 in daily transaction [fees] in May 2022, compared to $130,000 in May 2018. Ethereum and other crypto assets mirror this same pattern of less pronounced drops in on-chain activity than in prior bear markets.”
BTC and ETH show consistent progress
Both Bitcoin (BTC) and Ethereum (ETH) are also displaying consistent progress in development activity. THis is very important as it is happening despite the recent bearish price action, according to the researcher.
“Commits to the Bitcoin network have grown over 50% in the past two years as developer efforts consistently improve. This has been one of the few leading indicators for growth in crypto, since being an open-source ecosystem, it relies on developers globally contributing for sustained improvement of these networks.”
Stay tuned for more news and also makes sure to keep your eyes on the crypto market.
