Bitcoin Transfer Volumes Soar in 2024, Set to Break 2023’s Record in 2 Weeks

October 6, 2024 Bitcoin.com

Bitcoin Runes hype fades, transactions plummet 84%

May 23, 2024 Coin Telegraph

Optimism transaction volumes surpass Abitrum’s for the first time in six months

July 27, 2023 Coin Telegraph

ARB Token

Optimism lost the top spot to Arbitrum in January, after the end of its season one “quest," but has regained it after Worldcoin launched on July 25.

The Optimism network has surpassed Arbitrum in transaction volume for the first time in six months, according to July 27 data from blockchain analytics platform Artemis. Both networks are layer 2s of Ethereum that use optimistic rollup technology, which compresses and batches transactions before submitting them to Ethereum, potentially lowering transaction fees.

Optimism fell behind Arbitrum based on volume in January, as season one of its “quest” feature ended. However, it recovered the top spot on July 25 as Worldcoin launched.

Data from Artemis shows that the networks had similar levels of transaction volume from August to December 2022. In December, Optimism pulled ahead of Arbitrum but fell behind again in January. This coincides with season one of Optimism’s “quest” feature, which rewarded users for performing various on-chain activities. Arbitrum also saw a dramatic increase in volume in March, when it launched its Arbitrum (ARB) token and airdropped it to users.

*Logarithmic chart of daily transactions for Optimism and Arbitrum. Source: Artemis*

In June, Optimism implemented its Bedrock upgrade to lower transaction fees, resulting in a 67% surge in transaction volume. Still, Artemis data shows that this surge was not enough to overtake Arbitrum at that time.

From July 23-26, Optimism transactions increased even further, going from 490,500 to 809,070, an increase of nearly 65%, pushing Optimism into the top spot between the two networks. The final two days of this period coincided with the July 25 launch of Worldcoin on Optimism.

The recent surge in Optimism activity may also be influenced by the upcoming launch of Coinbase’s Base network, which its developers say will be connected to Optimism as part of an upcoming “Superchain.”

Despite winning the race for transaction volume, Optimism is still far behind Abitrum in terms of capital deposited into its contracts, also called total value locked (TVL). According to blockchain analytics platform DefiLlama, Optimism has only $923 million TVL, whereas Arbitrum has over $2 billion TVL.

Bitcoin network transactions and fees surge amid investor de-risking

May 10, 2022 Coin Telegraph

Coin Telegraph

Investors are urgently sending Bitcoin into exchanges in order to either de-risk their portfolio or to protect margin positions with more collateral according to Glassnode’s latest report.

The number of transactions on the Bitcoin network has spiked over the past week, which blockchain analysis firm Glassnode suggests are ‘urgent’ transactions due to investors de-risking.

A sudden influx of 42,800 transactions hit the mempool on Bitcoin (BTC) last week. Glassnode’s chief analyst says these were likely "urgent" transactions due to the high amount of fees paid per transaction. The average fee rose to $2.72 last week, about 15% higher than the typical average according to bitinfocharts, an on-chain data tracker. The findings were reported in the Glassnode “Week On-chain” report on May 9.

The #Bitcoin market saw and extremely volatile week, with prices trading down to $33.8k, and an additional 10% of the network falling into loss.

We analyse the market reaction across the mempool, exchanges, derivatives and stablecoin supply contractions.https://t.co/WDuzlObVxK
— glassnode (@glassnode) May 9, 2022

The mempool on a blockchain network is where transactions are sent before being confirmed in a block. The higher the fee paid on a transaction, the higher the likelihood it will be picked ahead of others.

Glassnode wrote that investors paid higher-than-average fees likely in order to prioritize their bids to de-risk their portfolio or add collateral to their margin positions as BTC price has fallen 19% over the past seven days. Just over 15% of fees paid for on-chain transactions correlated with exchange deposit rates, and these were only higher in May 2021 during another period of heavy sell-offs.

BTC inflows to exchanges outpaced inflows for most of 2022, however that changed last week as there was more than $50 million more worth of inflows than outflows. Glassnode said the total amount of exchange-related volume was only surpassed last October and November and matched the peak of the 2017 bull market in late December, and early January of 2018.

Glassnode also noted that BTC accumulation has been on a low trend since the middle of April. “Shrimps” who hold less than an entire Bitcoin were the largest accumulators of any cohort of wallets up to whales through the past week, but even their accumulative strength was weak compared to previous months this year.

The largest distributors, or sellers, were those in the highest cohort who hold at least 10,000 coins. According to Glassnode, distribution has been higher than accumulation through most of 2022, however, the largest accumulators have been those holding less than one BTC up to those holding 10.

With total fees spent at a local high as investors urgently try to exit more volatile positions, it appears that Bitcoin markets may continue down their “rocky road” to capitulation, as Cointelegraph reported on May 10.

Bitcoin whales jumping ship as exchange inflows reach 3-month high

May 9, 2022 Coin Telegraph

Coin Telegraph

The Bitcoin market appears to be retracing the gains it has made since January as whales may be exiting and selling on centralized exchanges according to Glassnode.

The number of Bitcoin whales is rapidly decreasing to levels not seen since earlier this year, possibly due to the three-month high of coin inflows to centralized exchanges (CEXs).

Bitcoin (BTC) market tracker Glassnode has issued several bearish indicators for the largest cryptocurrency by market cap, including data suggesting a market exit for whales holding at least 1,000 coins, and exchange inflows of more than 1.7 million coins, the most since February.

#Bitcoin $BTC Exchange Inflow Volume (7d MA) just reached a 3-month high of 1,755.021 BTC

Previous 3-month high of 1,729.605 BTC was observed on 08 May 2022

View metric:https://t.co/1S6EbDkdOO pic.twitter.com/8kSJPOLJXW
— glassnode alerts (@glassnodealerts) May 9, 2022

High CEX inflows of BTC suggest whales are potentially exiting the market by selling coins, possibly as a way to prepare for a longer market downtrend. Cointelegraph reported on May 7 that recent sell-offs were likely executed by short-term holders who had accumulated coins in late January and early February when prices had reached a 6-month low of about $34,800.

Unfavorable outlooks on the market based on hard data have led the Bitcoin Fear and Greed Index to drop to 11, the “Extreme Fear” region. The index rates the general amount of fear or greed among Bitcoin investors.

Bitcoin Fear and Greed Index is 11 — Extreme Fear
Current price: $34,041 pic.twitter.com/PQK3x6YMok
— Bitcoin Fear and Greed Index (@BitcoinFear) May 9, 2022

Despite the poor sentiment, BTC daily transactions do not yet appear to have been negatively affected. According to on-chain data from YCharts, there were 233,892 daily transactions worth about $30 billion on May 8, which has been about the average since January.

Lead on-chain analyst at Glassnode “Checkmate” tweeted on Sunday “Many of you are waiting for the Bitcoin ‘capitulation wick’,” partially confirming the notion that investors expect BTC to continue to fall. A capitulation wick is usually characterized by a relatively long, sudden, and catastrophic drop in price, like the one witnessed on March 12, 2020, when BTC dropped 43% in a day to around $4,600.

Many of you are waiting for the #Bitcoin 'capitulation wick'.

If it happens, and it really is THE capitulation wick, the majority of folks won't step in a buy it because the fear will be too great.

This is the way it always is, and always will be.

Tip: have a plan, stick to it
— _Checkmate ⚡ (@_Checkmatey_) May 8, 2022

Market analyst Caleb Franzen tweeted to his 11,000 followers on Sunday that investors should look for markets to continue trending downward based on his analysis suggesting we will remain “short-term bearish.” He concluded by stating that it “seems worthwhile to expect more pain.”

BTC is currently down 10.39% over the past seven days, trading at about $33,806 according to Cointelegraph data.

Cardano daily transaction volume surges but ADA prices slump

February 22, 2022 Coin Telegraph

Coin Telegraph

Charles Hoskinson’s blockchain has again become one of the most active networks by transaction volume as it approaches that of Bitcoin but none of that has helped the price of ADA.

The Cardano blockchain has experienced an explosion in on-chain activity and now trails only Bitcoin in current 24-hour transaction volume, surpassing Ethereum in the process according to Messari.

Cardano (ADA) currently has $17.04 billion in 24-hour transaction volume, according to data from on-chain analytics firm Messari. With Bitcoin (BTC) at $18.85 billion and Ethereum (ETH) at $5.25 billion according to Messari, Cardano is in second place in that category and is closing in on the top position for this metric.

#Cardano just surpassed $LTC and $ETH in transaction volume.

Are you bullish on $ADA?
— The Moon (@TheMoonCarl) February 21, 2022

Overall, this month has seen tremendous activity on Cardano. On Feb. 14, 24-hour transaction volume topped $35 billion and on Feb. 19 it reached $31 billion. However, it is still far from the $138 billion all-time high in the volume set on Sept. 3 last year.

ADA daily tx volume from Jan. 24 to Feb. 22 - Messari.

Transaction volume on Cardano has spiked in recent weeks in large part due to the launch of the SundaeSwap decentralized exchange (DEX). The hype around this launch caused days of congestion on the blockchain from the huge influx of transactions.

Regardless of the SundaeSwap effect on the network, the total number of transactions on Cardano has increased 480% from 5.5 million on March 30 last year to nearly 32 million on February 20, according to Google’s Cardano Blockchain Insights.

Conditions were ripe for Cardano’s move up the ranks as both Bitcoin and Ethereum have seen declining network activity lately. Bitcoin 24-hour volume is down 84% from the 3-month peak of $116 billion on November 25. Ethereum volume has been declining since December 4 when volume reached a 3-month peak of $21.29 billion. It was down 82% to a 3-month low of $3.99 billion on Feb. 19.

ETH daily tx volume from Nov. 25 to Feb. 22 - Messari

Despite trailing in transaction volumes, Messari shows Ethereum still dominates Cardano in several other key network usage metrics. Ethereum boasts 76 million addresses to Cardano’s 3.4 million addresses for example.

Related: Blockchain-based internet company 3air abandons Cardano for SKALE network

Cardano was listed by Morgan Stanley’s wealth management global investment office as one of the four ‘Ethereum killer’ blockchains that could usurp smart contract superiority from Ethereum due to their lower costs and faster speeds. The others in the report included Solana, Polkadot, and Tezos.

The positive on-chain metrics have not helped ADA prices which have slumped 13% over the past 24 hours according to CoinGecko. ADA is currently trading at $0.833, down 73% from its $3.09 all-time high on Sep. 2, 2021.

NFT volume has more than tripled — even amid price crash — as Meme.com raises $5M

May 28, 2021 Coin Telegraph

NFT volume has more than tripled — even amid price crash — as Meme.com raises M

Coin Telegraph

The NFT sector has seen exponential growth, tripling in transactions since January and pushing through the market crash this month.

The popularity of non-fungible tokens, or NFTs, shows little sign of slowing down, despite the extraordinary marketwide crash that wiped more than $1 trillion off the crypto market cap.

According to a report by decentralized app marketplace DappRadar, the average number of NFT sales rose almost 300%, from 21,815 per day in January, to 82,373 in May (so far). This number rose even higher as crypto prices started to plummet on May 12, with sales surging to almost 94,000 NFT transactions a day.

The crypto market crash, which created a widespread panic as almost 1 million leverage trades got liquidated, also resulted in serious congestion and exorbitant transaction fees across the Ethereum network.

These surging gas fees didn’t deter NFT traders, however, with many turning to other marketplaces on alternate blockchains like the Atomic Market on the EOSIO blockchain. Its daily transaction volume of 20,296 accounts is higher than any other NFT marketplace (excluding NBA Top Shot).

*Top 5 NFT Marketplace transactions over time. Source:* *DappRadar*

Although the number of trades has increased, the value per trade took a hit immediately as crypto prices started to drop. The first 11 days of May saw an average of $14.9 million traded daily, however, since then, the volume dropped to under $6 million per day. Many NFT owners appear willing to take a loss this month with the average token sale price dropping from $180 to $70.

Retail traders aren’t the only ones pushing through challenging market conditions.

Yesterday, internet trend platform Meme.com announced it had raised $5 million for a new marketplace focusing specifically on meme cryptocurrencies and NFTs. Ultimately, Meme.com developers plan to create a “CoinMarketCap for memetic content” with charts and timelines where users can compare each meme and trend. The company’s Instagram account already has 7.2 million followers

The platform’s investors include Outlier Ventures, Digital Finance Group, Morningstar, Blockhype, Spark Digital Capital, CEO of mobile developer Altitude Games Gabby Dizon, and Polygon co-founder Sandeep Nailwal.

Investors’ on-chain activity hints at Bitcoin price cycle top above $166,000

April 17, 2021 Coin Telegraph

Bitcoin Price

The Bitcoin cycle top would likely come in at price levels above $166,000 per coin if history repeats.

After breaking out of the two-months ascending triangle, the price of Bitcoin (BTC) is firmly staying above $60,000. Current on-chain volume suggests investors are still strongly buying Bitcoin at current price levels.

Furthermore, the current price is not even close to a short-term price top when comparing to historic network valuation multiples.

BTC price bull run not overheated, investor activity shows

While bear market bottoms often coincide with seller exhaustion, bull cycle tops happen to occur with buyer exhaustion. Watching long-term investor activity during the different stages in a bull market proved to be a good indicator for BTC price support levels and overheated conditions in the past. Current investor activity suggests that the market price is far from overheated.

On-chain analyst Willy Woo, who developed a methodology to measure this activity, describes it as follows:

“Investor activity” is predicated on on-chain volume. This is because when BTC moves between wallets between two different participants, we assume there was a payment for it off-chain (fiat or alt-coin). It’s an imperfect measure but approximates what’s going on.

The investor activity, expressed in on-chain volume is then multiplied by the 2-year moving median of the "Network Value" over "Transactions" (NVT) and is then divided by the circulating supply. The price that is derived through this methodology is called "NVT Price."

*Bitcoin NVT Price. Source: Woobull.com*

NVT price does not only give a good indication of how much volume is willing to pay current prices but it can also be used as an estimate of the price floor in a bull market due to the long-term moving average of NVT. Therefore, NVT could also be called the valuation multiple of the network derived from transaction volume or could be thought of as the PE, or "price to earnings," ratio of Bitcoin.

NVT premium says short-term top possible at $95K

The market price rarely dipped below the NVT price during a bull market. If it did, it proved to be an excellent buying opportunity. The current NVT Price is $47,500. Based on yesterday's closing price of $61,600 per Bitcoin, the market is willing to pay a premium of 1.3 times the current long-term investor valuation. This multiple is called the NVT premium.

During prior bull markets, NVT premiums above 2 turned out to be short-term price tops, and above 3.5 marked the top of a bull market. Currently, this metric suggests that the current NVT premium of 1.3 is nowhere near prior bull market tops.

Based on the current NVT price of $47,500, the next major short-term top with an NVT premium of 2 could likely be at or above $95,000 while a potential cycle top, with an NVT premium of 3.5, could be at or above $166,300.

Current NVT premium suggests more upside potential

While an NVT premium of 1.3 may see a short-term drop in the price by 30% or more, the multiple also shows that it would be at least another 54% price increase from yesterday's closing price to reach a potential short-term cycle top.

However, this assumes that history will repeat again and that similar NVT premiums as in prior bull markets would be reached again. Neither is guaranteed, of course. Nevertheless, if this phenomenon were to repeat, the risk-to-reward ratio certainly favors the upside.

What's more, a $166,000 price tag may actually be a fairly conservative prediction, according to Woo. As Cointelegraph previously reported, the analyst explained that BTC price could also reach as high as $300,000 by December 2021, based on other metrics.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Nothing here should be considered investment or trading advice. Past performance is not a guarantee of future results. Every investment and trading move involves risk. The author owns Bitcoin. You should conduct your own research when making a decision and/or consult with a financial advisor.

transaction volume

BTC price bull run not overheated, investor activity shows

NVT premium says short-term top possible at $95K

Current NVT premium suggests more upside potential

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