Bitcoin (BTC) outflow from exchanges continues amid the rocketing popularity of spot ETFs in the U.S. Meanwhile, the BRC-20 euphoria lost its traction by mid-March 2024.
Bitcoin (BTC) fees lost 33%: Key reason
Bitcoin (BTC), the largest blockchain network, sees its aggregated transaction fees plunging by 33.1% in the last days. Such estimation was shared by blockchain data analytics platform IntoTheBlock in its latest weekly newsletter.
In this week’s newsletter we focus on the signs of greed developing in crypto markets. We evaluate the amount of leverage in crypto & analyze the consequences it may bring to investors 👇https://t.co/8X8vEyqUG7
— IntoTheBlock (@intotheblock) March 16, 2024
Bitcoin (BTC) fees witnessed a significant plunge due to decreasing activity of BRC-20 tokens or Bitcoin Ordinals. Compared to NFTs in programmable blockchains, these extremely cost-ineffective tokens contributed to a BTC fees upsurge in Q3, 2023.
Meanwhile, $700 million worth of BTC was withdrawn from CEXes as spot ETFs in the U.S. continue setting records. As of March 16, 2024, they accumulated over $12 billion in liquidity from institutional investors.
Fees on Ethereum (ETH), the second-largest blockchain, set a yearly high for the second consecutive week, with the Uniswap (UNI) exchange leading in terms of gas consumption.
However, the outflow of ETH from exchanges — which is a major indicator of bullish sentiment — is lagging behind that of the Bitcoin (BTC) network.
Crypto correction coming: Indicators by IntoTheBlock
Also, the analysts shared a number of very alarming signals for Bitcoin (BTC) and altcoins holders. Markets might be overheated as funding rates on derivatives exchanges jumped to multi-month highs.
Funding rates on Binance and Bybit reached levels of 0.06% and 0.09%, respectively. The APY rates on stablecoin-based investing products also increased, which signals about overheated markets as well.
The dynamics of DeFi lends are sending similar messages: Aave Finance (AAVE) increased its debt ratio by 114% in the last year.
