Bitcoin’s Confirmed Transactions Reach 2017 Bull Run Levels
Bitcoin’s price may be nowhere near where it was in December of 2017, but there’s another Bitcoin metric that’s starting to look very similar: confirmed transactions.
Since April began, Bitcoin’s daily confirmed transaction count has broken 400,000 on several occasions. That’s a level BTC transactions haven’t reached since the 2017-2018 bull run that saw the coin’s price eclipse $19,000 per token.
Bitcoin’s confirmed transaction count often spikes at roughly the same time that prices spike, although there isn’t always a direct relationship between what the price is doing and what how many daily transactions are processed.
While the current daily transaction level has yet to break the all-time record, which is just above 490,000 transactions, it’s not far off. If Bitcoin’s price continues to climb, we could see a new record for confirmed transactions sometime in the next several months.
Bitcoin's block generation rate is basically stable, and there is a cap on the size of a single block. Therefore, transactions that can be confirmed every day have an upper limit. Bitcoin hasn't yet reached this upper limit, though, so the increase in daily confirmed transactions can be regarded as a reflection of the increase in Bitcoin network‘s activity.
But whatever the price does, a growing transaction count is a good sign. An increase in daily transactions suggests growing interest in Bitcoin itself, which bodes well for the cryptocurrency’s future prospects.
This article was updated on 4/24 to clarify a detail about Bitcoin block generation, block size limits, and their relation to daily confirmed transactions.