Certain on-chain indicators suggest the crypto market’s current downtrend may not end up being as brutal as past bear markets, according to Lucas Outumuro, head of research at analytics firm IntoTheBlock.
In a new analysis, Outumuro acknowledges that it’s getting “harder and harder to argue we are not in a bear market.”
Though the total crypto market cap is down 57% its all-time high of about $3.07 trillion, which it hit last November, Outumuro notes that fundamental indicators have dipped less compared to previous bear markets.
“As a high portion of demand comes from speculation, it is normal for transaction fees to plummet severely as trading sentiment dwindles through bear markets. Remaining at higher levels, however, suggests stickier demand.
Bitcoin has been averaging above $500,000 in daily transaction [fees] in May 2022, compared to $130,000 in May 2018. Ethereum and other crypto assets mirror this same pattern of less pronounced drops in on-chain activity than in prior bear...
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