Market Intelligence Firm Points to August Inactivity Trend Impacting Bitcoin and Ethereum

Bitcoin and Ethereum fees dropped in a slow week as their prices remained relatively stable compared to the previous week.

In a recent tweet, the market intelligence platform and advanced DeFi tools provider, IntoTheBlock, torchlights the lackluster activities of the bigwigs in the crypto market.

The firm revealed that Bitcoin (BTC) and Ethereum (ETH) have seen a relatively sluggish week so far. It attributed the apparent dormancy in trading to August’s historical inactivity trend across trading landscapes.

IntoTheBlock argued that the August trend’s impact was becoming noticeable in both networks’ fee structures.

Both #Bitcoin and #Ethereum had a relatively slow week. August tends to be the most inactive period of the year for trading, and this could have impacted the drop in fees for both networks pic.twitter.com/BvFlHx1fiO

— IntoTheBlock (@intotheblock) August 4, 2023

 

BTC and ETH Fees Decline

IntoTheBlock attached an image to the tweet to shed more light on the declining activity, comparing it with the previous week’s turnout.

According to IntoTheBlock’s data, Bitcoin, the pioneer crypto, saw a minuscule decrease of 0.06% in its price over the week, settling at $29,282.

However, the cumulative fees associated with Bitcoin transactions dwindled by a substantial 28.64%, culminating at $3.8 million. As for the exchange flows, there was a marked reduction in outward movement this week. Over $80 million left exchanges compared to an influx of $311 million in the prior period.

Shifting our gaze to Ethereum, the second-in-command cryptocurrency, its price experienced a slight dip of 1.48% in the last seven days, settling at $1,842.

Like Bitcoin’s narrative, ETH’s network fees encountered a negative growth of 3.71% over the week, dropping to $44.1 million.

Moreover, the tides of exchange flow for ETH followed a different pattern to BTC. This week saw an outpouring of $273 million, in contrast with the prior week’s outflow, estimated at $289 million.

While the crypto market seems to fall to a passive mode momentarily, large investors could be stockpiling their portfolios ahead of the anticipated bull run.

In a previous post, IntoTheBlock revealed that stalwart long-term Bitcoin holders were engaged in a persistent game of accumulation. The data indicated a compelling trend where the quantity of Bitcoin held by those in the short-term category became lower than the levels observed before the sensational bull run of 2021.