Prices of cryptoassets faltered in April as geopolitical uncertainties and financial markets turmoil continued to spill over into crypto markets. Analyzing on-chain data can provide a clearer view of trends in network usage and demand, separating crypto-fundamental signals from price volatility noise.

In Kraken Intelligence’s latest report, Head-Fake, the team investigates key on-chain data points to explore where the crypto market stands today and what may lie ahead in the space.

State of the market

BTC fluctuated between $38K and $48K in April and is now struggling to break through the $40K resistance level amid ongoing macroeconomic tension. The US Consumer Price Index (CPI) reached a 40-year high of 8.5% and Russia continues to occupy Ukrainian territory, causing pessimism to spill over into crypto markets.

On-chain indicators like BTC’s Spent Output Profit Ratio (SOPR) and Market Value to Realized Value (MVRV) z-score signaled early signs of positive sentiment last month, ultimately proving to be a head-fake and reversing in April 2022. Current readings indicate oversold conditions while BTC struggles to break back into neutral territory.

On-chain fundamentals

SOL transaction count has fallen drastically year-to-date, followed closely by ALGO, DOT, ADA and ETH, suggesting a rise in holding activity. Moreover, ALGO, DOT, ADA and ETH also experienced negative active address growth over the same period — another indication that network demand is falling.

BTC and AVAX are the only cryptoassets that realized positive growth in transaction count. While SOL transaction count fell in April, the asset saw positive growth in new addresses, suggesting that Solana may have gained some traction from new entrants.

Want to learn more about on-chain activity in April and what’s ahead? Download the Kraken Intelligence report Head-Fake, in which the team explores crypto fundamentals and on-chain data that shaped the market in April.