KEY POINTS:
The number of daily transactions in Bitcoin is approaching peak levels.
Onchain data shows that active traders are on the rise.
According to on-chain data, daily transaction numbers on the Bitcoin network may be pointing to a bull start!
The Number of Transactions on the Bitcoin Network is Increasing!
According to on-chain data, more than 270,000 transfers are currently taking place on the Bitcoin network per day. The relevant indicator here is the number of transactions, as the name suggests, it measures the total number of transactions that take place on the Bitcoin blockchain in a day.
When the value of this indicator is high, it means that many movements are taking place on the network at the moment. This type of trend indicates that there are currently active traders in the market.
On the other hand, low values of the indicator indicate that the network is currently observing low activity and there is not much interest among investors in making transfers on the blockchain.
Currently, the version of the metric of interest in the current discussion is the “entity-adjusted” version, which means it only counts transactions that occur between separate entities. Here, an “asset” is defined as a single wallet or group of wallets controlled by the same investor.
Bitcoin Network Comes to Life!
The chart below shows the trend of Bitcoin transactions over the past few years, with 30-day and 365-day simple moving averages (SMO):
As seen in the chart above, although the number of Bitcoin transactions has been low for most of the downtrend, the indicator has been revived with the price rally in the last few months.
This shows that investors do not show much interest in crypto when the price is experiencing a period of boring consolidation, but they are directed to make sudden moves when there are exciting volatile price movements.
In the last few days, the indicator has reached particularly high values as the asset has continued to rise and the 30-day SMA (Simple Moving Average) indicator has also gone higher.
According to the current number of 30-day SMA transactions, transfers on the Bitcoin network occur at the level of 270,700 per day. This is not far from the periodic peak observed at the beginning of the bull market.
The recent rapid growth in the indicator is a sign that the BTC network is growing again after the downtrend stagnation. Overall, such growth is a positive development for the price in the long run.
