Data: Bitcoin network activity is strengthened again, investors may start buying before halving

When the price of Bitcoin fell sharply four weeks ago (3 · 12), as investors started hoarding coins and turning to holding Bitcoin, Bitcoin network activity showed a downward trend. With the recent increase in the daily transaction volume of Bitcoin, Bitcoin transfer activity has started to heat up, and this trend is being reversed.

Data: Bitcoin network activity is strengthened again, investors may start buying before halving

Bitcoin price recovery returns investors?

Glassnode released a chart on bitcoin network activity. The chart shows that the number of bitcoins moving across the network has accelerated rapidly since August last year and did not stabilize until last month. Now, this number increases again.

Since the sharp decline in March, the overall network activity has also increased again, as shown in the following chart of Blockchain.info:

11-April-1a-980x490 @ 2x

The main conclusion from this information is that this leading cryptocurrency is under development again. The change in activity on the network may be relatively small, but it still shows a shift from holding Bitcoin to using Bitcoin.

11-March-1b

The increase in these network activities is likely due to the increase in transaction volume. There is no doubt that this will happen as prices increase. Many investors view the market recovery as an opportunity to quickly profit from the apparently growing demand for cryptocurrencies.

It is worth noting that the upcoming halving event also provided a strong impetus for buying Bitcoin immediately before the supply diminished in mid-May. Similarly, concerns about inflation and the continued slowdown of the global economy have driven many people to put their assets in safe havens, and Bitcoin and other cryptocurrencies are the most ideal choices.

Data shows network strength

Although the amount of activity on the Bitcoin platform fluctuates every month, it is worth noting that the Bitcoin network continues to operate as designed. The transaction fee is still very low, and the transaction confirmation time is relatively fast.

When there are about 400,000 transactions per day, the Bitcoin network will begin to show signs of congestion, a number that greatly exceeds the current number of transactions. The last time this happened was in 2017, resulting in slow transactions and high fees. Now, the Lightning Network exists to help prevent such problems from happening again, but more work needs to be done to make it reliable and user-friendly enough to be used by the public.

It can be reasonably assumed that with the adoption of the overall cryptocurrency, the number of active bitcoins will continue to increase. Activities in the entire blockchain field are accelerating, and most of these activities take place in areas such as decentralized finance and supply chain tracking. Current data clearly shows that interest in this new asset class continues to grow.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Beginner's Guide | Why choose a highly liquid exchange?

Source: Medium Translation: First Class (First.VIP) Liquidity is the most important concept that everyone needs to un...

Blockchain

Crazy currency contract: leverage up to 125 times, and overnight positions of 2 billion US dollars

Text: Ratchet Source: A blockchain 100 times leverage, 125 times leverage … More and more players in the curren...

Blockchain

Deep Dive into Uniswap V4: A "Masterpiece" of Decentralized Exchange

Updates to Uniswap V4 could further enhance its position in the DEX space, with the "hooks" feature greatly improving...

Blockchain

Bloomberg: The currency stability exchange's own stable currency will be issued in "weeks to one or two months"

According to Bloomberg News, Wei Zhou, chief financial officer of Binance, the main cryptocurrency exchange, said in ...

Opinion

Vitalik said he has never sold ETH for personal gain, we took stock of his personal and charitable wallets

Even if Vitalik Buterin occasionally sells some ETH, it will not have a significant impact on the long-term developme...

Blockchain

Viewpoint | Exchange is the public chain platform

If 2019 is almost a stand-alone platform currency, let me think about " What is value capture? " and "...