Bitcoin, the world’s most valuable digital currency, experienced a volatile last month as the price of BTC dropped nearly 40% within the last three weeks of May 2021. However, the volatility has decreased over the last few days.
According to the latest data published by crypto analytics firm Glassnode, the mean transaction fees for Bitcoin and Ethereum dropped significantly during the last week. The average transaction fee on the Bitcoin network currently stands at around $7.38, the lowest level since January 2021.
Ethereum, the world’s second-largest cryptocurrency, also experienced a similar trend. The mean transaction fee on the ETH network currently stands at around $6.08, a substantial drop from nearly $60 in May 2021.
“The average transaction fees for both Bitcoin and Ethereum have returned to levels not seen since Jan 2021 and Aug-Sept 2020 during ‘DeFi Summer’. The average transaction fee paid on each network is currently $7.38 for Bitcoin and $6.08 for Ethereum,” Glassnode mentioned in Twitter.
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Bitcoin and Ethereum posted significant gains during May 2021 as BTC reached a monthly high of nearly $60,000 on 10 May. ETH on the other hand, reported an all-time high of $4,330 on 12 May.
Earlier this week, Finance Magnates reported about the acceleration in the BTC accumulation by Bitcoin millionaires. Large BTC addresses holding between 100 and 10,000 coins accumulated nearly 30,000 Bitcoin during the last week of May 2021. In its latest report, Glassnode highlighted the supply metrics of Bitcoin. “The Liquid and Illiquid Supply metric show that throughout May, a total of 155k BTC have transitioned from an Illiquid state (HODLed) to Liquid or Highly Liquid state providing an estimate of the total ‘sell pressure’. This will account for both Long-term holders and Short-term holders who spent coins previously held by to wallets with heuristics similar to cold storage,” the company added.
BTC is currently trading near $38,000. The digital asset has a market cap of more than $700 billion.