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Bitcoin has been surpassed in a critical transaction and trading metric for the first time in the cryptocurrency's history. According to statistics acquired by crypto analytics firm Santiment, Ethereum (ether) surpassed bitcoin in terms of daily active addresses following a big price increase on Tuesday.
“On a day when Ethereum surpassed bitcoin for the first time in terms of daily active addresses, altcoins entered the fray,” the firm added. BitInfoCharts data indicates that similar pattern occurred on a few occasions in April and May, albeit the dataset appears to be less complete. The increase in daily active addresses follows a six-month low in Ethereum fees. “The average Ethereum transaction fee has decreased to $2.15, the lowest level since December 2020,” said Simon Peters, a market analyst at online trading platform e-Toro. “Average costs increased to about $70 during May's crypto bull run, but have since fallen to virtually zero as the market corrected. As the network progresses towards 2.0, it is feasible that fees may continue to decline, despite the fact that the upgrade will take years to complete. However, the improvement will eventually result in faster and more affordable mining, as well as an increase in Ethereum's environmental credentials.”
Ethereum reached a record high in mid-May, around a month after bitcoin reached its all-time high. Its price then plummeted from above $4,200 to below $1,800. It has since recovered above $2,100 and is currently trading at the same level as it was at the start of April. It is still over 800% higher than last year. Although bitcoin's collapse was less dramatic than ether's, it has yet to rebound to the same extent. The losses indicate that the world's most valuable cryptocurrency had the worst second quarter in 2021, having fallen by more than half from April's record highs. Analysts disagree on the direction in which the biggest cryptocurrencies will take next.
Bitcoin has entered a significant "purchase phase" for the fifth time since 2012, according to one indicator. For the first time since March 2020, the Puell Multiple indicator of mining profitability entered the green zone this week. Following that event, Bitcoin saw its largest market surge in history, while some believe the cycle's peak has already been reached.
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