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Transactions in BNB: 30% Down their peaks

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Transactions in BNB: 30% below their peaks

Transactions in BNB: 30% below their peaks

After a few months of heavy congestion, the BNB,  Bitcoin and Ethereum networks have significantly lowered their value transfer activity. For example, the most recent Glassnode weekly report shows how there has been a decrease of between 25% and 38% in the number of transactions in both chains, compared to their respective peaks of a few months ago. According to research, after Bitcoin BNB can reach it’s highest level in end of DEC 2021, but you must have knowledge about coinbase vs binance if you want to purchase crypto for yourself.

Said the report, published this Monday, August 30, highlights this drop and how activity on the networks remains well below previous values, even though market prices have started to rise again.

Consequently, with this drop in daily transactions, the Bitcoin mempool (confirmation waiting list for BTC shipments ) has been completely emptied and has remained that way for weeks now.

Right now, there are few transactions on hold, and some of the last blocks mined at the time of this writing were confirmed well below their maximum capacity, as Mempool Space shows. But, again, the contrast is clear concerning NOV and DEC. 

Let’s consider what is bnb? BNB is a coin owned by Binance exchange, Binance is a trusted place to but and sell crypto with lowest fees. Although the outlook indicates that people are not using BNB in recent times, this may not be the case. Although the number of transactions in the chain has dropped, a rebound can be seen in recent weeks. In July, for example, it reached an even lower level of about 180,000 transactions a day. Additionally, in Crypto Notice we have recently reported an increase in the flow of coins to exchanges, which suggests that beyond the activity on the chain, there is an increase in the use of BTC within these platforms. And those movements are not reflected in the blockchain.

Little movement, low commissions in Bitcoin

Since last April, what has not been recovered are the miners’ rewards in commissions paid for the transactions. With less demand for space in the Bitcoin blocks, also the commissions have decreased.

Currently, miners are receiving a total of about 21 bitcoins per day in-network fees. This figure, which represents only between 1% and 2% of the total rewards for miners each day, is a sign of a very significant drop compared to the 300 BTC that came to move in commissions during the peak of April.

On the miners’ side, this represents a clear cut in their daily rewards. But if we look from the point of view of the network users, it is great news to be able to quickly confirm a Bitcoin transaction with less than half a dollar on average, according to calculations by the same Mempool Space while this note is being written.

Ethereum is low in transactions but still with high commissions.

For Ethereum, the drop in transactions is 26.6%. In recent days, this network has processed 1,100,000 transactions a day, while at the peak of May, more than 1,500,000 were seen daily, according to data from the analysis firm.

Unlike Bitcoin in Ethereum, this decrease in activity has not had the same effect on network fees. Even with the recent London bifurcation, which included an upgrade (EIP-1559) that would lower network fees or commissions, Glassnode’s report shows that the crypto has continued to rise in recent weeks.

Interestingly, within the Ethereum ecosystem, we see quite a dramatic divergence in on-chain attention. While transaction counts and active addresses decline, the magnitude of fees paid is trading significantly higher. This is most likely attributed, at least in part, to strengthen trading and investment demand for NFT.

Right now, the daily commissions of the Ethereum network are around 10,000 ethers (ETH). And according to Glassnode, this level can be considered high. In addition, they compare it with high moments of the network.

Specifically, they refer to the months leading up to the cryptocurrency market bull run and the rise of decentralized finance platforms (DeFi), the previous big market trend before non-fungible tokens (NFTs). Researchers attribute this situation with commissions precisely to the boom in the NFT market.

As we know, this market has captured practically all the attention of cryptocurrency and blockchain enthusiasts in recent months. And in recent weeks, that boom has been greater with the emergence of NFT games that allow you to make money playing, such as Axie Infinity or Plant vs Undead.

DeFi, the big losers in Ethereum

Glassnode mentions another effect that this growth of the world of NFTs has had, beyond the transactions, commissions and profits of its users: the fall of DeFi. More specifically, the disinterest that major DeFi seems to face today.

The researchers point out a very representative decrease in both transactions and active addresses for the tokens of four of the most important platforms among the DeFi: AAVE, of the platform of the same name; COMP, Compound’s governance token; UNI (Uniswap) and the Yearn Finance token, YFI.

The outlook, analysts say, is “somewhat bleak” for the DeFi ecosystem. Especially with “most [of the protocols above] breaking to new lows this particular week.”

As transactions and fees drop across both networks covered in the study, this report highlights a growing trend of hoarding (or saving) in both BTC and ETH, Ethereum’s native cryptocurrency. On that data, we will delve into another article of Crypto.

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