Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
- New Projects clinging to Bitcoin’s blockchain drive transaction rates
- Indonesian P2P volumes continue to rise
- Crypto market continues its strong rise
Bitcoin develops a completely new use case as dangers of network spamming rise
A recent article has resurfaced which said that the new Veriblock project is driving substantial BTC traffic. While there have been a lot of projects that take advantage of Bitcoin’s network stability, this news is slowly raising alarm as the transaction rate of bitcoin is inching towards an all-time high. So, it seems that many of these transactions are coming from an entirely new bitcoin use case, other than just for sending money. Without going into too much technical detail, what’s happening here is that some new projects are making use of Bitcoin’s stability as a network to maintain the stability of other crypto projects.
It also seems that this is rapidly becoming the focus of hot debate among crypto spheres. While this is good in a way, it has raised a debate regarding network congestion. The use of crypto’s main Blockchain in this way has some upset that it could be “spamming the network” and by raising the amount of data stored it could increase the fees. Proponents of the concept, on the other hand, feel that this is actually just another real use case of bitcoin and the ability to store data in this way is built into the code for a reason. No matter what side one is one, at this point, one can take comfort in the fact that transaction fees in bitcoin are at a two year low at the moment, despite the added traffic.
Crypto markets continue to gain strength
Continuing its run from last week on the back of the news that crypto assets have just been legally recognized as a trading commodity in Indonesia, the large spike in seen in Indonesian volumes on P2P site Localbitcoins. With the size of the Indonesian remittance market topping $2.7 billion in Q3-2018, this is quickly becoming a crypto market to watch. While that’s from Indonesia, a lot of cryptomarkets have risen nicely over the weekend. move that has largely been led by Ethereum. In this graph below, one can see ETH (white line) against a basket of other crypto assets. Notice the sudden spike yesterday morning, which was followed by a full retracement. After which, Ethereum continued to rise throughout the afternoon and by the evening turned into a market-wide rally.
Another strong figure that shows market gaining strength is that the global volumes that had bottomed out around $14 billion on February 8th have now come up as high as $27 billion today. Movements that happen on strong volume tend to be more meaningful in the market as it shows the flows have power behind them.