Bitcoin (BTC) Onchain Transactions up 50% in Six Months
The Bitcoin network has increased in it’s on chain transactions even though the price has dropped significantly in the last six months.
The price of Bitcoin (BTC) took a significant hit in 2018 as speculators started leaving the market after the 2017 mania. The price is a poor indicator of the fundamentals of the network as it is driven by a lot of speculation on Cryptocurrency exchanges, but the number of onchain transactions is a better indicator as it signifies the wealth transferred on the main bitcoin network instead of buying and selling on exchanges.
The data from Blockchain.com clearly illustrates the increase in the number of onchain transactions on the Bitcoin network in the past six months. For example, on 22nd July last year, the number of daily transactions were around 167k which is a lot less compared to 300k transactions on January 15th. Even on high throughput days, the daily transaction amount was shy of 250k compared to the low transaction days in December which easily touched 250k.
While the price of Bitcoin (BTC) has dropped more than 50% the amount of Bitcoin transactions has increased by 54% in the past six months (as estimated by Longhash).
The number of onchain transaction may still not be accurate as it excludes the transactions that are batched by exchanges which has become increasingly common. Transactions on the lightning network have also increased exponentially, currently, there are over 5300 nodes with more than 20,000 channels created.
The average fees on the Bitcoin network have reduced significantly in the past six months. The average fees has dropped over 59% from $1.3 in July to $0.54 in January at a similar to price levels in May 2017.
A recent report from Forbes indicates that over 20% of Bitcoin transactions is generated by a project called VeriBlock which piggybacks on the Bitcoin network to secure other Crypto networks. If this is true then it might mean that the number of genuine transactions on the network is lower than the data.
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