In bear markets, holders accumulate showing unwavering faith. The other side of that is a decrease in the “willingness to spend” or use the assets. The latest Intotheblock report “highlights the diverging pictures between on-chain demand and accumulation of the largest two crypto-assets.” Some people still have trouble admitting we’re currently in a bear market, but the signs are everywhere. Related Reading: This On-Chain Indicator Suggests Bitcoin Still Only 1/3rd Into Bear Market Why would you move your money if your goal is to accumulate? It doesn’t make sense. The whole situation Intotheblock describes, though, makes all the sense in the world. Signs Of Blockchain Activity Decreasing According to the report, this month had “the lowest on-chain activity in years.” Let’s examine the indications that Intotheblock identified, and then we’ll get to holders and their need to accumulate. “Network fees for Bitcoin and Ethereum reached multi-year lows.” This is one of the clearest and easier-to-determine indicators. Especially in Ethereum, since that blockchain’s main characteristic is that fees rise with usage. At the moment, the NFT market is stale and DeFi activity is not what it used to be. Plus, it seems like a good time for holders to accumulate what they can. “Network fees paid to use Ethereum reached their lowest in two years.” Since the controversial EIP-1559 passed, Ethereum burns a portion of the gas fee from every trans...
