Bitcoin
Will Bitcoin’s 1B transaction record give BTC the boost it needs?
- Bitcoin has seen a strong upward trend in daily transaction count compared to the previous cycle.
- Active addresses and volume have declined over the past month.
Bitcoin [BTC] recently reached the impressive milestone of 1 billion transactions. It’s total all time transaction count it was 1,000,803,494 at press time.
Its price was again above the $62K mark but lacked a strong short-term trend.
The news that a 10-year-old dormant BTC wallet transferred its assets sparked interest.
However, in the last two months we have seen a huge shopping spree of BTC whales, which establishes the idea of a strong bull run. Network security was also firm.
Examining the transaction count
Source: CriptoQuant
Daily transaction counts have trended slowly upward over the past year, seeing a lull from January to March before trending upward from March to mid-April.
There was a huge increase on April 23, reaching 921 thousand transactions that day.
Activity was much greater than four years ago. Furthermore, last cycle’s high transaction count has already been overshadowed by last year’s activity.
This was a positive sign of increased adoption and usage.
Source: CriptoQuant
The hash rate also trended steadily higher. This indicated that miners will need to spend more energy to secure the network, which also makes it more difficult for external entities to take control of the network.
This security is extremely reassuring for long-term investors and the cornerstone of Bitcoin’s value.
Transaction volume showed a short-term slowdown
Source: Sanction
In February and March 2024, the price of BTC rose from US$42,100 to US$73,000. The 7-day moving average transaction volume also showed a steady upward trend.
Periodic dips are responsible for the drop in activity during weekends.
While transaction counts were high, volume was down compared to the local March peak. Daily active addresses have also slowly lost steam over the past five weeks.
Therefore, activity showed an upward trend last year, but in the last month there was a slowdown.
To read Bitcoins [BTC] Price prediction 2024-25
Comparison with other networks shows that BTC is insignificant in terms of daily transaction count.
Ethereum [ETH] has average 1.1 million transactions per day in the last two months, reaching a maximum of 1.96 million on January 14th.