The recent report by Diar outlined the drop in Bitcoin’s on-chain transaction volume causing it to “hit new lows quarter-on-quarter since” mid-2017. However, the report mentioned that the increase in the on-chain monthly transactions in USD valuation had increased and hit a value of 132.6 billion; the volume of this extent was last seen in June 2018.
The report further outlined:
“But this remains, in all likelihood, the cause of trading increasing due to Bitcoin’s recent price surge rather than actual use-case. Bitcoins moved on-chain outpaced dollar value hitting a 14-month high in April. With a value of over $130Bn, the transaction volume closes in on June 2018 levels when the price of Bitcoin averaged $7000 – 35% higher than today.”
In addition, according to Token Analyst, the Bitcoin volumes have been consequently rising for over 3 months after major rallies witnessed in March and April 2019.
Although the Bitcoin’s monthly USD volume has increased, the overall Bitcoin quarterly volume saw a significant decrease. The report mentioned that quarterly, BTC provided a different story for the decline. It stated:
“Whilst 1Q19 remains almost a whopping double the volume than that for the same period in 2017 in USD terms, quarter-on-quarter on-chain activity for Bitcoin has been in decline since the end of 4Q17.”
The start of the first quarter, i.e., April 2019 already recorded 35% lower volume in comparison to Q4 of 2018. This could be speculated due to the two reasons: the first being the bear market pressure and the second reason could be due to the recent Bitfinex and Tether drama.
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