Crypto asset costs crashed in early Might, when BTC fell almost -32% from $39,500 to $27,000 inside every week.
Might this be the start of an extended crypto winter? Or do the on-chain metrics inform a unique story? In Kraken Intelligence’s newest report, Survival Mode, the workforce investigates key on-chain knowledge factors to discover the place the crypto market stands right now and what might lie forward.
State of the market
Over the past month, crypto property slumped as U.S. inflation charges continued to hover round 40-year highs. Russia’s ongoing navy operations in Ukraine additionally contributed to the risk-off sentiment throughout monetary markets. The Terra ecosystem additionally skilled a large-scale loss of life spiral in Might, additional contributing to broad-based declines.
Whereas BTC/USD trended decrease in Might, altcoins carried out worse, main the crypto market decrease throughout virtually all property. Total, altcoin dominance (the ratio between the market capitalization of a crypto asset to the entire market cap of the complete crypto market) additionally fell year-to-date. ADA dominance rose month-over-month in Might, whereas ALGO noticed the smallest dominance decline, adopted by DOT, ETH, NEAR, SOL and AVAX.
Community transaction quantity continues to current blended sentiment. Since January 2022, on-chain quantity for ADA has seen a robust upward development, whereas BTC, ETH, DOT, DOGE and ALGO noticed on-chain quantity fall.
New addresses and energetic addresses additionally mirror blended sentiment of on-chain demand, leaning destructive. Whereas SOL energetic addresses rose, signaling community demand from present and new market individuals, BTC, ETH, AVAX, ADA, ALGO and DOT noticed a drop in energetic addresses.
Need to study extra about on-chain exercise in Might and what’s forward? Obtain the Kraken Intelligence report Survival Mode, during which the workforce explores the crypto fundamentals and on-chain knowledge that formed the market in Might.