- The number of daily transactions on the Bitcoin network has fallen to its lowest level since May.
- Despite the decline in user activity, average transaction costs continue to rise.
After a strong increase in September, the number of daily transactions on Bitcoin has increased [BTC] According to the information collected, the network has been on a downward trend since the beginning of October The block data.
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Daily transactions on the network, observed on a seven-day moving average basis, showed that the average number of weekly transactions completed on the network between May and mid-September ranged from 400,000 to 500,000.
On September 20, the chain recorded a daily number of transactions of 595,110, the highest number since May 16.
After reaching this peak, BTC began to see a steady decline in the number of transactions. As of October 9, only 284,000 transactions had been completed on the network. This represented a 52% decline from the September 20 peak and an 11% decline on a month-to-date (MTD) basis.
Source: Het Blok
Some W’s and some L’s
A review of BTC’s on-chain performance since the beginning of the month revealed an overall decline in user activity. In addition to a decrease in the number of daily transactions, the network has also seen a decrease in the number of active daily addresses since the beginning of the month.
This rose steadily in September, reaching a daily high of 1.11 million unique addresses on September 15, the highest daily number in more than a year.
However, this has since declined and as of October 9, the chain registered fewer than 950,000 active addresses.
Source: Het Blok
Furthermore, the number of unique addresses involved in the first transactions involving BTC on the network has also decreased.
Information from The Block Data showed that this also increased sharply in September, with a peak of 648,000 new addresses on September 19. Since then it has fallen by 37%.
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A decrease in a network’s daily active address indicates reduced demand for the original coin, which can affect its price. Since the price of BTC rose above $28,000 and briefly exchanged hands at $28,400 on October 2, it has since traded below $27,600, data from CoinMarketCap showed.
Interestingly, despite declining user activity on the network, average transaction fees have been steadily increasing since the beginning of the month. At the time of writing, the average cost of transacting on the BTC network at $2.83 has increased 19% since September 30.
Source: Het Blok