After the long and painful cryptocurrency market slump in April and June that king coin sent, Bitcoinand the leading altcoin, Ethereum chasing scary lows, the bulls regained their strength in July.
With its price far from its all-time high of November 2021, Bitcoin is up over 18% within the 31-day period. Closing the month with an index price of $1680, ETH the top alt also rose 54%.
The blockchain analytics platform, Santiment, in its latest report noted that two leading cryptocurrencies made significant on-chain strides within the 31-day period.
July 2022: BTC and ETH
Since the beginning of the bear market, when BTC and ETH started moving further away from all-time highs, the sentiment from the trading crowd has been negative, according to analytics firm Santiment.
However, as the prices of these assets corrected in July, trader confidence was restored and Santiment found that traders are now confident that “prices can organically continue to rise after an impressive July”.
Over the past six months, as the price of the royal coin has fallen, key stakeholders have reportedly become increasingly skeptical of the coin’s hoarding.
The reason for this can be attributed to “fears of inflation or further rate hikes to come in September (after the latter was announced last week), the exhaustion of Covid concerns or the ongoing wars in Ukraine”.
Additionally, over the past six months, key stakeholders holding 100 to 10,000 BTC have released 2.26% of the BTC supply, Santiment reported.
On the social front, Bitcoin’s social dominance maintained its July highs. According to Santiment, the market downturn woke up “traders and prompted them to flock away from their jackets and back to the relative safe haven, Bitcoin.”
Hence, the development of social dominance. A look at ETH also revealed the same pattern of growth in its social dominance over the same period.
Additionally, within the 31-day period, Santiment found that on July 26, the ETH network recorded an index of 1.06 million daily active addresses. It was at an all-time high.
As for BTC, the highest recorded daily active addresses in July was 994,000 recorded on July 19th.
Finally, Santiment revealed that in July, ETH became “extremely cheap to move.” This was a result of Ethereum circulation decreasing since the beginning of the year.
In July, the cost of transactions on the ETH network dropped significantly. Thus, coins moved more cheaply.