There’s good news and bad news for traders monitoring onchain data for signs of a market revival. The number of daily transactions has been rising for months, suggesting that BTC is being used for more than merely speculative purposes. Daily trade volume remains sluggish, however, suggesting another bull cycle is still some way off.
Also read: Rio Carnival to Feature Bitcoin This Year
BTC Passes 350K Transactions per Day
The average number of daily transactions on the Bitcoin Core blockchain has been rising steadily since mid-2018 and recently surpassed 350,000. Save for a wild day in late 2017, when BTC notched a record 490K transactions, and the opening weeks of 2018, which saw major spikes, Bitcoin is seeing more sustained usage than ever. With Lightning Network taking a small but growing number of transactions offchain, along with Liquid, Blockstream’s inter-exchange settlement layer, the actual number of onchain transactions would otherwise be higher still.
Daily BTC transactions
Network usage does not necessarily correlate with price, and it is common for a blockchain to see sustained transaction growth while price remains stagnant. For all the usage that the BTC chain is witnessing, it remains trapped in $3,400-$3,700 territory. A look at trading volume shows