There is good news and bad news for traders who monitor data chaining for signs of market recovery. The number of daily transactions has been increasing for months, suggesting that BTC is used for other than speculative purposes. However, the volume of daily trading remains low, suggesting another bullish cycle.
BTC spends 350,000 transactions a day
The average number of daily transactions on the Bitcoin Core blockchain has increased steadily since mid-2018 and has recently exceeded 350,000. In 2017, BTC recorded a record 490,000 transactions and the first weeks of 2018, which were marked by significant peaks, and Bitcoin is experiencing more sustained use than ever before. With Lightning Network accepting a small but growing number of off-line transactions, as well as Liquid, the block-to-trade settlement layer of Blockstream, the actual number of chain transactions would be even higher.
Daily BTC TransactionsThe use of the network does not necessarily correspond to the price and it is common for a blockchain to experience a steady growth of transactions while the price remains stagnant. Despite all the uses that the BTC chain assists, it remains trap in the area of $ 3,400 to $ 3,700. An examination of the volume of transactions shows that there has been no noticeable increase for months. The year 2019 started off with an average of 50,000 BTC exchanged per day, far from the end of 2017, when several hundred thousand bitcoins were traded daily.
Daily BTC volume
BTC fees remain low for the moment
The costs of the BTC have not been a topic of discussion for months because there was not much to say. A BTC transaction can currently be done for about $ 0.25. Although almost 50x higher than the average Fresh BCH, it is still weak enough to retain the content of the majority of network users. BTC users should not, however, rely on fees that will remain permanently low. As of 2017-18, data from Coinmetrics shows, BTC's average transaction costs tend to be lower than the average number of transactions. In other words, it is possible that the growing number of daily transactions of BTC also results in increased costs in a timely manner.
2017-18 data for BTC transactions and feesRegardless of BTC's cost market orientation, continued use of the protocol for its original purposes – sending P2P in electronic cash – bodes well for future adoption and pricing. Combined with ongoing development work behind the scenes, which allows users to send and receive bitcoins with confidence, the next phase of growth could be guided by more enduring fundamentals than just speculative mania.
Do you think that the increase in the use of the network has a correlation with market prices? Let us know in the comments section below.
Images courtesy of Shutterstock, Blockchain.com, Coinmetrics and Bitcoinity.org
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