We’re back to taking a closer look at mid-May’s bear market blues.
We previously examined the volatility and chaos in the market last month as prices for tokens around the ecosystem fell, and fell hard. Then, it was all about rapidly declining values for meme tokens, big spikes in liquidations, and massive token inflows on CEXes and DEXes alike.
But how did all this chaos play out for traders? Well, as @BlumbergKellen shows us with labeled on-chain data via Velocity, May 19 was a tough day for transaction fees and a busy one for whales.
Gas Goes Sky-High ⛽
The chaos started fairly early in the morning on May 19, at least for American traders. At roughly 9am EST, there was a massive spike in transaction fees.
That spike would leave ripples that resounded throughout the day, with average transaction fees a new high for May.
Whale’s Tales 🐋
Why were gas fees so high you ask? Well, because as prices dropped around the crypto ecosystem, traders, especially whales, rushed to get their funds out and avoid being liquidated.
As we can see in the chart below, May 19 saw a massive jump in whale activity, with the number of high-value transactions (here defined as those worth more than $100,000) climbing 30% higher than its previous peak.
Safe to say that May 19 was a day that most crypto traders won’t be forgetting any time soon.
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