For weeks leading up to Bitcoins halving, a common narrative that was advocated well by the ecosystem was the improvement in Bitcoins on-chain fundamentals. After the price regained its momentum following the crisis in March, the improvement in Bitcoins on-chain metrics was in fact, almost unavoidable.
However, over the past week, the aforementioned bullish momentum has somewhat faded. On the contrary, according to Arcane Researchs latest market update, a particular metric has continued to register growing demand across Bitcoins network.
Source: Arcane Research
Now, according to the attached chart, Bitcoins Network Demand Score noted a perfect 6/6 score, 2 weeks after the halving event, implying that the network has grown stronger and might possibly embark on a long-term bullish run in the future.
However, there was something contrasting to be noted between certain on-chain metrics, at the time of writing. The chart below highlights that the active transaction count continued to fall since the conclusion of the halving event, implying that fewer people were using the blockchain.
Source: ByteTreeSource: blockchain.com
Similarly, a decline can also be registered in the mempool transaction count. A decrease in mempool transaction count implied that the number of unconfirmed transactions was going down. Drop-in unconfirmed transactions indicated that the network was suffering from lower congestion at the time of writing, when compared to the heightened activity that was noted during the first week of May.
A lack of clarity between price and on-chain demand?