The number of transactions on Bitcoin has been rising linearly since the beginning of 2018. The average transaction fees have also been declining since the implementation of Segwit and Lightning Network on Bitcoin. The average fees of the transactions on Bitcoin is approximately $1.75 per transaction.
Moreover, the number of transactions on Bitcoin grew exponentially until January 2018 before plummeting to record low values in two years. The number of transactions executed on Bitcoin per day below 150,000 was recorded last on 13th March 2016; almost two years ago.
The number of transaction fell significantly during January 2018 after reaching the ATH in terms of price and in briefly again in February 2018. It is suggestive of the ‘end of euphoria’ in Bitcoin markets at the time.
Since then, while the price of Bitcoin had seen further downside, the number of transactions has been on a linear rise. At this rate, the number of Bitcoin transactions in January 2020 would reach around 600,000 transactions per day and about 1 million transactions during Q1 of 2021.
Furthermore, the Bitcoin ledger also surpassed the 400 million milestones on 8th April 2019.
Record Number of Transaction on 4th April
On 4th April, Bitcoin recorded a rather unusually large number of transactions on its ledger. The total transaction fees paid during the say was 154 BTC. While the daily transaction fees on Bitcoin ranged between 15-30 BTC. It has been rather steady in the past year with only some days of irregularity.
These essentially signify movements of a large number of Bitcoins. Co-incidentally, huge price movements are also recorded around these days. On 20th November 2018, the total amount paid in transaction fees was 69 BTC. While on 29th December it was 45 BTC again. This is can possibly come from the Exchanges and other trading avenues.
Do you think the move signifies that the bulls are back? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com