Subdued on- and off-chain metrics in crypto market indicate cooling interest

From Investing.com

August 26, 2024 09:25 AM:

Analysts from Citi Securities reported subdued on- and off-chain metrics in the cryptocurrency market, indicating cooling interest. Declining search trends, network engagement, and low futures funding rates are key themes.

Google search volumes for Bitcoin and Ethereum have dropped significantly, signaling reduced retail engagement.

Despite network activity declining, Ethereum unique daily users across layer-1 and layer-2 chains are up by 34% from 2023 averages.

Bitcoin network, though improved, still sits 29% below its 2023 average activity levels.

Low futures funding rates, negative in August, coupled with declining Bitcoin volumes, highlight reduced demand in the crypto ecosystem.

Both Bitcoin and Ethereum spot ETFs have seen net outflows, showing a decline in trading activity.

Analysts anticipate subdued metrics until further economic clarity or guidance from the Federal Reserve.

Stablecoin market caps continue to rise amidst market downturns, while hash rates are rebounding after recent volatility post halving.

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