Bitcoin (BTC)’s daily transaction volume has spiked in recent days to reach highs last seen in January 2018, in the aftermath of the top crypto reaching an all-time high price of $20,000.
The increasing volume has some within the industry forecasting that this move indicates continued evolution within the crypto space, more on bitcoin’s fundamentals.
According to transactionfee.info, bitcoin’s daily transaction have reached an average of over 330,000, which compares to an average TX/day of about 350,000 after the 2017 price boom.
A sharp decline saw the average TX/day drop to about 180k transactions by February last year. Since then, volumes have risen steadily despite the year-long bear market.
The CTO of security firm Casa, Jameson Lopp, analyzed bitcoin’s performance over 2018. In a Medium post published earlier this year, Lopp noted that bitcoin performed so poorly price-wise last year, “but by almost any other metric, the system is improving and growing.”
The analysis focused on several metrics indicating that bitcoin experienced substantial growth over the year, including general interest, network security and health, node operations, and technical developments among other indicators.
Lopp said that the several improvements in block propagation, upgrading of nodes, and “a new highly performant miner relay network,” were all affecting the coin’s overall growth.
Among key areas of growth according to Lopp was the improvement in fee estimation algorithms and the adoption of Lightning Network and segregated witness (SegWit).
SegWit inputs in BTC transactions spending for 2018 increased steadily, rising from about 10 percent to reach a high of 40 percent. At the same time, average bitcoin transaction size peaked at 750 bytes last February but fell to about 450 by Q4 of 2018.
Bitcoin’s dominance in 2018 in the crypto market saw the top coin’s index rise to over 50 percent (it’s currently at 52.6 percent). BTC dominance had fallen to a low of 32.5 percent as the altcoin market boomed, but the meltdown has left many cryptocurrencies nursing up to 90 percent losses.
According to Lopp, “the number of reachable nodes didn’t fall much in comparison to the exchange rate.”
In his view, it is either because node operators are “highly dedicated to Bitcoin” or they are holding on for economic purposes. It means that these people are not going to pull their nodes because coin prices have crashed.
These sentiments were also expressed last November by crypto diehard Anthony Pompliano, whose blog post then, noted that Bitcoin’s fundamentals had markedly improved over the years.
Among the fundamentals are bitcoin’s cost per transaction, an increase in active users, and daily transactions.
On Friday, bitcoin’s price surged by over 10 percent to establish a higher high of over $3,700 on the day. That surge has since corrected downwards today Saturday, February 9, with its price surging by about 6.8 percent.
According to XBT.net, the bitcoin-to-dollar exchange rate is currently at $3,669. Over $7.2 billion worth of bitcoin has been traded in the last 24 hours.
The upsurge comes at a time when SEC commissioner Robert J. Jackson Jr. said that the Securities and Exchange Commission would eventually approve a bitcoin exchange-traded fund (ETF).
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.