Bitcoin Transactions Haven’t Been This High Since the Last Bull Run of the Market
Transaction volume is a telltale sign of how involved consumers are in the crypto industry. During the bear market, volumes understandably were lower, but the latest numbers are showing a much more positive outlook. In fact, recent reports from Coin Rivet show that the number of confirmed transactions has finally surpassed 400,000. This number is substantial, considering that the bull run in 2017 saw almost 500,000 transactions at the time.
New and higher numbers in the Bitcoin network are a good indication that change is happening within the market.
— Erik Voorhees (@ErikVoorhees) April 23, 2019
Ever since Bitcoin peaked in 2017, there have been more demands for on-chain transaction collapse as “next block” confirmations have started imposing over $25 in fees. By the beginning of 2018, that activity baseline for transactions has remained around 150,000. Now, the volume is reaching massive levels that have not happened since around the bull run of 2017. Much of the credit has been due to the layer-two scaling solutions and the increased demand it has caused, along with the Lightning Network and Blockstream’s Liquid Network sidechains.
On average, the transaction fees are much lower, thanks to the optimizations that have been implemented, like SegWit and transaction batching. As wallet developers upgrade their protocols to improve best practices, the optimizations are even easier to include.
With the number of Bitcoin outputs daily reaching over one million, there are many analysts and experts that believe this is a good sign of the economic activity for the Bitcoin blockchain. While the number of transactions a day is a good indicator of interest, these transactions can include multiple outputs, making this metric much more accurate, in terms of interest.