Glassnode Weekly Summary for May 23, 2022

There is nothing to say in the foreword, Winter is coming, open positions cautiously

The demand for the two main chains continues to decrease

On-chain transaction fees continue to decline. The reasons behind it are complex, but the main reason is insufficient demand.

There are two aspects to the decline in the demand for derivatives. If the price falls to a certain level, it can attract capital to enter, but for the uncertainty of the market, there is a lot of short-term and medium-term bearishness.

Gas consumption hits historic lows (down more than 50%)

It has been lower for eight consecutive weeks, the longest decline in history, and the return on investment is extremely low, which can be said to be the starting point of the entire bear market trend.

In the past, the investment performance of ETH was better than that of BTC, but over time, after it has begun to lag behind, it seems that the bear market is about to start to show its power.

DEFI activity dropped across the board

Although there will be an end for the bears, but not now

However, bands and the like still have their benefits. The grid can also gradually increase positions. It is estimated that L2 will enter a relatively low price (the gas of ETH has fallen like this, and the urgency of L2 will be low), If you like it, you can replenish it slowly now (but don't buy too much, I don't know how many times you have to go)