Bitcoin Transaction Rate Reaches Five-Month High

The Bitcoin transaction rate has reached a new five-month high as the top-ranked cryptocurrency continues to enjoy a significant price rally. Some analysts believe the current price rally has some real substance to it given the high trading volume in the market.

2.5 Transactions Per Second on the Bitcoin Blockchain

According to Mati Greenspan, a senior analyst at eToro, the average transaction speed on the Bitcoin is now above 2.5 transactions second. The last time the blockchain recorded such transaction speed was in mid-February 2018.

Commenting on the development, Greenspan tweeted today:

A higher transaction speed is indicative of an increase in the use of BTC as a medium of exchange. At the height of BTC-mania in late 2017, the blockchain transaction speed topped 4.5 transactions per second.

Apart from the transaction speed, the number of on-chain transactions is also on the rise. Presently, the network is recording upwards of 250,000 transactions per day, which is the highest recorded level since the end of April of 2018.

This spike in BTC blockchain transaction speed has coincided with a significant price rally that has seen the top-ranked cryptocurrency move past $8,000. Different market experts have aired their views on the current trend with some alluding to an imminent decline before the final bull rally to close out the year.

High Volume in Both Spot Trading and Bitcoin Futures Trading Markets

While positive sentiments continue to saturate the market, the effects are being felt in both the BTC-spot trading and futures trading markets. Another tweet by Greenspan posted today shows the trading volume for Tuesday (July 24, 2018) on both the Cboe and CME BTC futures contracts:

Together, both contracts contributed to a trading volume of $490 million (setting the price of Bitcoin at $8,000). BTC futures trading is cash-settled, with no movement of the underlying asset. Thus, the market doesn’t have any significant direct impact on the BTC price. However, the trading volume in the arena can cause a shift in sentiment in either direction.

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