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Ethereum, Bitcoin transaction fees drop to weekly lows

Namrata Shukla

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December 2019 has not been very welcoming to the bulls in the market. Many major cryptocurrencies have lost enormously under the market’s bearish pressure, including Bitcoin [BTC], which has lost about 4.55% of its value since the beginning of December. Following its lead, many cryptos have met a similar fate. This was reflected by Coin Metrics’ latest report, which revealed that Bitcoin and Ethereum’s market cap dropped by 0.3% and 1.7%, respectively.

Source: Coin Metrics

Source: Coin Metrics

The report also noted that transfer value and fees for the top two cryptos had significantly dropped over the past week. The report stated,

“BTC and ETH fees both dropped to weekly lows at the end of the week. On December 8th, BTC had $108,452 total daily fees, while ETH had $39,987.”

Out of the mentioned coins in the report, XRP’s transactions increased by 50% last week after being up by over 121% the week before. However, over the past week, XRP transactions fell by 34.1%.

As per Coinmetrics’ data, Bitcoin reported a 1% gain over the past week, along with XRP which noted a 2% rise in its price. On the other hand, Bitcoin Cash [BCH] lost 1% percent of its value, while Litecoin lost 5%.

Apart from the market movement, a crypto-scam appeared to be in the works. The PlusToken scheme made an unrealistic promise to its “investors,” one promising a monthly return of 10% to 30% from its tokens. However, soon after the arrest of its primary architect, the rumors of the organization exit scamming caught fire and later turned out to be true.

Coin Metrics’ report noted that the wallet held by the organization continued to “shed coins” and as per reports cited by Coin Metrics, “Huobi has processed a large amount of PlusTpken withdrawals, and on-chain data appears to back that up.”

Source: Coin Metrics

Source: Coin Metrics

The attached chart reflected the estimated supply of BTC on Huobi over the past year. The supply has seen a notable rise since June 2018, while also shooting up towards the end of the year, coinciding with reports of the PlusToken sell-off.

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Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.

1 Comment

1 Comment

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    sung

    December 12, 2019 at 1:20 am

    Some people claim “BTC is too hard to use” (Mark Cuban). When the automobile was invented, there were no asphalt roads and traveling was difficult and cars broke down all the time. When the internet was invented, is was truly horrendous trying to just reach a website. You had to remember all kinds of codes and it literally took 30 minutes to one hour just to load one site. But here we are now, after further development and look at automobiles and the internet now. BTC is also undergoing this huge infrastructure development but even faster than both what the auto industry and the internet has seen.

    Based upon BTC history, the 2012 halving event took BTC from $11.86 to a low of $2.50 before beginning its’ march to a new all-time-high of $1,086.00, then correcting down to $153. The 2016 halving event took BTC from low of $153 to $19,900 before correcting down to $3,200. In both cases of 2012 and 2016 halving, the lows of the respective correction were much higher than the previous highs which were reached prior to the halving event. Based on this chart history, it would make sense that the 2020 halving would reach a high far beyond 2017 ATH of $19,900 and when it corrects, the new low should still be higher than $19,900 ATH of 2017. The main point is, it really does not matter if one buys BTC at $7,000 or $6,000 range because the gains will far outstrip the $1,000 difference. What matters most is to buy BTC before the takeoff so one is not left on the sidelines watching and weeping because they missed the boat, or in this case, the rocket.

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