Berichten

BTC Transactions Hit 1-Year High But Volume Remains Sluggish

,

There’s good news and bad news for traders monitoring onchain data for signs of a market revival. The number of daily transactions has been rising for months, suggesting that BTC is being used for more than merely speculative purposes. Daily trade volume remains sluggish, however, suggesting another bull cycle is still some way off.

Also read: Rio Carnival to Feature Bitcoin This Year

BTC Passes 350K Transactions per Day

The average number of daily transactions on the Bitcoin Core blockchain has been rising steadily since mid-2018 and recently surpassed 350,000. Save for a wild day in late 2017, when BTC notched a record 490K transactions, and the opening weeks of 2018, which saw major spikes, Bitcoin is seeing more sustained usage than ever. With Lightning Network taking a small but growing number of transactions offchain, along with Liquid, Blockstream’s inter-exchange settlement layer, the actual number of onchain transactions would otherwise be higher still.

BTC Transactions Hit 1-Year High But Volume Remains Sluggish
Daily BTC transactions

Network usage does not necessarily correlate with price, and it is common for a blockchain to see sustained transaction growth while price remains stagnant. For all the usage that the BTC chain is witnessing, it remains trapped in $3,400-$3,700 territory. A look at trading volume shows that there has been no discernible uptick in months. 2019 has begun in muted fashion, with an average of 50,000 BTC being exchanged per day – a far cry from late 2017, when several hundred thousand bitcoins were being traded on a daily basis.

BTC Transactions Hit 1-Year High But Volume Remains Sluggish
Daily BTC volume

BTC Fees Remain Low for Now

BTC fees haven’t been a talking point for months because there hasn’t been much to talk about. A BTC transaction can currently be made for around $0.25. While almost 50x higher than the average BCH fee, it’s still low enough to keep the majority of network users content. BTC users shouldn’t count on fees remaining permanently low however. As 2017-18 data from Coinmetrics shows, average BTC transaction fees tend to lag behind average transaction count. In other words, it is possible that BTC’s rising number of daily transactions could lead to fees also rising in due course.

BTC Transactions Hit 1-Year High But Volume Remains Sluggish
2017-18 data for BTC transactions and fees

Regardless of which direction BTC’s fee market takes, continued usage of the protocol for its original purpose – sending electronic cash P2P – bodes well for future adoption and pricing. Combined with the ongoing development work being done behind the scenes, which makes it easier for users to send and receive bitcoin with confidence, means the next phase of growth may be driven by more sustainable fundamentals than speculative mania alone.

Do you think increased network usage has a correlation with market prices? Let us know in the comments section below.


Images courtesy of Shutterstock, Blockchain.com, Coinmetrics, and Bitcoinity.org


Need to calculate your bitcoin holdings? Check our tools section.

The post BTC Transactions Hit 1-Year High But Volume Remains Sluggish appeared first on Bitcoin News.

BTC Futures Volume Plummets Relative to Spot Trade Heading Into 2019

,

Research carried out by Tradeblock has found the combined trade volume across the futures contracts offered by Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) plummet relative to spot market volume during the second half of 2018.

Also Read: Mt. Gox Creditors Neither Need nor Deserve This Kind of ‘Hero’

BTC Futures Volume Rivals Combined Trade Activity Across Leading Spot Exchanges During Q3 2018

Despite the hype surrounding the launch of CME and CBOE’s BTC futures contracts at the end of 2017, said markets comprised a small fraction of combined trade activity taking place on Coinbase, Itbit, Kraken, Bitstamp, and Gemini.

With the burst of the 2018 bubble, however, spot volume fell by more than 70 percent when comparing January’s trade activity with average monthly volume posted during the second half of 2018.

BTC Futures Volume Plummets Relative to Spot Trade Heading Into 2019

Mixed with a more than doubling in CME futures trade activity, trade volume for CBOE and CME’s BTC futures came to rival that of Coinbase, Itbit, Kraken, BItstamp, and Gemini’s combined spot volume during the third quarter of 2018 – with CME’s volume dwarfing that of each individual exchange.

Futures See Volume Drop-Off During Final Quarter of 2018

While the volume of both the BTC spot and futures markets saw decline during September and October, November saw the combined spot markets post their strongest monthly volume since May, while the futures markets posted their second weakest month of the year.

BTC Futures Volume Plummets Relative to Spot Trade Heading Into 2019

While December saw the spot market post a healthy retracement, trade activity in the futures markets fell by more than half to post its worst performing month since launch, suggesting a shift away from the cryptocurrency derivatives offered by CME and CBOE in favor of the traditional cryptocurrency markets.

On Feb. 1, CME published a report stating that the average daily trade volume for its BTC contracts was $80 million during the previous 283 days, which, combined with CBOE’s approximately $10.65 million in daily trade, shows that the futures markets are currently falling roughly 4.5 percent short of rivaling the 24-hour trade volume between BTC and USDT on Binance.

Do you think that we will continue to see a decline in trade activity across the futures markets this year? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Tradeblock


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post BTC Futures Volume Plummets Relative to Spot Trade Heading Into 2019 appeared first on Bitcoin News.