Despite a 8.0% price drop in May 2023 due to macro uncertainty, the Bitcoin network activity remained incredibly strong.

The daily network hash rate, a closely followed metric that indicates the network’s health, climbed to a record high. It was the fifth consecutive month of increase for the said indicator.

Simply put, a larger hash rate means a more secure network. Nonetheless, Reginald Smith, a JPMorgan analyst, said in a note on Friday that he expects the network hash rate growth to slow over the coming months. He said that this is because funding for available rack space is hard to come by.

In terms of market cap, the 13 U.S. listed miners that JPMorgan tracks noted an aggregate increase of 5.0% last month to $6.7 billion.

Another metric that typically moves in tandem with the Bitcoin hash rate is the mining difficulty. The mining difficulty also climbed to a record high in May.

Recent data confirmed that the crypto transaction fee also increased last month. JPMorgan’s Smith said in his research note that transaction fees spiked to over 5 Bitcoin per block mined in early May. This should drive modest C2Q23 earnings upside for the industry at large.

Overall, the Bitcoin network activity remained strong in May 2023 despite a price drop. This is a positive sign for the network and the broader cryptocurrency market.