Bitcoin Daily Transactions Surge to Record Highs, But These Alternative Metrics Bode Less Well for BTC Price
The number of transactions taking place on the Bitcoin network hit a record high of 682,099 on Monday, according to data presented by crypto analytics firm Glassnode.
A surge in the last few days has seen the number of Bitcoin transactions fly past its prior record high of around 425,000 printed back in 2019, back when the Bitcoin price was around $5,500.
Analysts have ascribed the jump in network transactions to a surge in the number of Bitcoin non-fungible token (NFT) ordinal inscriptions taking place on the network.
According to crypto analytics website Dune, there have now been a total of 3.225 million ordinal NFTs inscribed to date, which has generated $7,394,739 in fees.
The surge in Bitcoin network transactions has helped power a sharp jump in the Bitcoin network’s hash rate (i.e. computing power) to new record highs of around 440 exahashes per second (EHS).
While higher transactions, a rising hash rate and higher fees are all positive signs for Bitcoin, as all indicate a more in-demand, stronger and more secure network, the Bitcoin bulls shouldn’t be careful not to get too excited.
That’s because other widely followed on-chain indicators pertaining to Bitcoin network utilization are sending more conservative signals.
The seven-day moving average of the number of active addresses interacting with the Bitcoin network recently fell to its lowest level since early January of around 870,000, down from over 1 million per day as recently as the 21st of April.
Likewise, the number of new addresses recently fell to a multi-month trough of around 420,000, down sharply from early April highs to the north of 516,000.
Meanwhile, the USD-denominated value of on-chain trading volumes remains moored close to its lowest levels since 2020
Read more on cryptonews.com
