- Bitcoin network sees its hash rate fading by a half
- Also, on-chain metrics follow suit, declining as well
BTC’s has rate, the computational power needed to mine new bitcoin blocks, has declined by 50% from its record high in May.
The Block’s Dashboard data indicates a hash rate drop from May 14 peaks, 180 EH/S to 90 EH/s at the moment.
The recent drops take the asset’s hash rate to where it was in 2020 May. Moreover, it is the highest decline in BTC history, significantly defying the long-term increasing trend.
According to the Block reports, China’s stiffer regulations on BTC mining activities caused hash rate falls. Remember, China has been a crypto mining hub for years. However, most provinces received notices from regulators over the past months to suspend crypto accomplishments in the region. The Asian homeland contributes a lot to the coin’s hash rate. The recent move by the country impacted the Bitcoin network hash rate.
Also, Bitcoin has witnessed price falls, dropping from its highest peak at $63,500 in mid-April to trade at around $35,300 today. With such scenarios, Bitcoin mining profitability declined. Though, the dropping hash rate might stabilize that.
On-chain Metrics Fall
Besides hash rate, the Bitcoin network has seen other falls.
Daily BTC transactions have dropped to their lowest level since 2018 July. The dashboard indicates 200,000 daily transactions on the BTC network in the past week.
Also, active addresses declined to their last year’s April levels. The day-to-day addresses on the BTC network have plunged to 765,000 in a day from 1.23 million. Moreover, the network sees fewer addresses created per day.
BTC transaction charges dropped as well. However, that is an advantage to investors since the network is cheaper to utilize at the moment. The fees have declined to an average of about $7 per day from $54 in April upticks.
One metric that defies the trend in this asset is the BTC lightning network capacity amount. Since beginning 2021 at around 1,000 BTC ($35.3 million at present-day prices), the BTC amount in the network surged rapidly to 1,640 BTC ($57.9 million) today.