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On Sunday, April 30, the Bitcoin network processed more transactions in a single day than at any point in its 14-year history. In addition, the daily number of Bitcoin transactions surged beyond 568,300 ā nearly 78,000 more than its previous peak during the top of the 2017 bull run. Thanks to Ordinals.
Tom Rodgers, Head of Research at the crypto ETP provider ETC Group, and Mikkel Morch, Chairman and Non-Executive Director at the crypto hedge fund ARK36, have been following Bitcoin closely over the last few days. Here are their take on the new daily TXs record.
Tom Rodgers, Head of Research at ETC Group, commented:
āThe Bitcoin network just smashed the record for the number of transactions processed, obliterating its previous peak set in 2019. So what just happened? The daily count of Bitcoin transactions hit a record of over 568,000 on Sunday 30 April 2023. Analysis of these transactions shows that more than 300,000 came from Bitcoin Ordinals.
During the last peak in 2019, most Bitcoin transactions skewed towards larger transactions, in the range of $1,000 to $10,000. This suggests most Bitcoin users were using the blockchain for trading. Compare this to today. The largest cohort of Bitcoin transactions - 359,560 - came from transactions under $1. This suggests a huge increase in Bitcoin velocity -- or the amount of Bitcoin being transacted by users, instead of being locked up in cold wallets and held over the long term.ā
Mikkel Morch, Chairman and Non-Executive Director at ARK36, commented:
āItās highly interesting that with bank failures and traditional finance showing weaknesses throughout the Western world, the transaction volume of Bitcoin is only going one way ā up.
Clearly, the current economic climate is creating opportunities for alternative systems like Bitcoin to gain more traction. The increasing daily transaction volumes on the Bitcoin network is a good āusage and adoptionā KPI for the cryptocurrency.
The daily BTC transaction volume going from strength to strength is bullish news as adoption is a key element in the worldwide use case of Bitcoin not just being a store of value or digital gold, but also as a very practical tool of payment. Bitcoin and other digital currencies increasingly being connected to payment cards and other more traditional modes of payments will create further bullish signals in and to the market.
At ARK36, we find the continuous fundamental adoption and increase in transaction volumes of Bitcoin a clear bullish signal.ā
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