Bitcoin Block Rate Is Low Every Year: Impact Of BTC Decline?
The Bitcoin network experienced a significant drop in average block size and transaction volume, which coincided with the drop in price to around $64,100.
The drop in block size — a measure of transaction data contained in each block — represents a sharp drop in Bitcoin (BTC) blockchain activity, which hit an annual low on June 7.
The network's Transactions Per Second (TPS) decreased over the same period in June, indicating that mining profitability may be declining due to reduced activity and reduced BTC rewards.
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The BTC halving event occurred in April and reduced rewards paid to miners by 50%, effectively reducing profits and incentives for blockchain activity.
Reaching highs of around 28 TPS and lows of less than 4.5 TPS through June, the average TPS at the time of writing was 9.12 TPS.
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Runes tell a different story
Despite the current state of the BTC blockchain, the performance of the Runes mining market provides additional insight into the Runes ecosystem and the network as a whole.
According to an X post from Leonidas on June 19th, the runes creation market remains profitable and reflects continued strong user activity on the BTC blockchain.
The secondary market performance of the top 10 largest runes mints ranged from a low of -82.76% to a high of +1,194.42%, indicating continued strong market activity.
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Bitcoin market ebb and flow
The recent drop in prices and the occasional drop in net activity could be just the beginning of a long correction.
Crypto analyst Rect Capital recently discussed a potential correction to continue in BTC, forming “sets of price action near ~$71,600 with high resistance.”
According to the analyst, on June 17, BTC was “very close” to retest the levels of $64,000 and $62,500, which are characterized by daily intervals of the Chicago Mercantile Exchange.
These gaps indicate areas in the price chart where there is a noticeable difference between the closing price of one day and the opening price of the next day.
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