Bitcoin, the world's largest cryptocurrency by market cap, has experienced a steady increase in its market valuation since the low of Dec. 17, 2018 which may be correlated to the strong growth in the number of confirmed transactions on its blockchain-reaching levels not seen since the peak of the market in 2017.Bitcoin's Network Activity on the Rise.
Since the beginning of the year, BTC's daily confirmed transactions have been skyrocketing.
Just this month, they surpassed the benchmark of 400,000 transactions per day, on several different occasions.
What is important about this statistic is that during the 2017 bull market when bitcoin was trading at around $20,000, the number of confirmed transactions per day peaked at 490,644 transactions.
The increasing network activity of the Bitcoin network could imply a shift in market sentiment, similar to how higher trading volume is correlated to bullish movement.
According to Erik Voorhees, the CEO of ShapeShift, the number of daily confirmed bitcoin transaction represents the most relevant metric in the cryptocurrency market.
Although there is no direct correlation between bitcoin's market valuation and the number of confirmed transactions, they have been moving similarly.
Some of the big players in the crypto sphere use batching, which is the process of incorporating multiple outputs in a single transaction, to reduce their transaction fees.
Thus, the number of daily transactions underrepresents the amount of economic activity occurring on Bitcoin when looking at transactions alone.
Currently, the amount of outputs per day is peaking at over 1.2 million, fueling the idea that bitcoin's bear market might be over as the total number of transactions are on the rise.
Bitcoin confirmed transactions per day approach 2017 highs, is the crypto market recovering?
gepubliceerd op Apr 25, 2019
by Cryptoslate | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.