Bitcoin On-Chain Volume Surges Following Price Rally: Diar

On-chain transaction volumes of Bitcoin have hit a 10-month high in April after months of a declining trend, revealed Diar.

The report outlined that Bitcoin transaction volumes rebounded after reaching a low last February and the uptrend was boosted following the recent rally of the digital coin's price.

“On-chain value of both Bitcoins and US Dollar value continue to follow price trends indicating the king of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term has yet to find any footing outside of speculative trading almost two years on from entering the financial challenger hall of fame,” Diar noted.

The total amount involved in the transactions was recorded at over $130 billion - a 14-month high. “With a value of over $130Bn, the transaction volume closes in on June 2018 levels when the price of Bitcoin averaged $7000 – 35% higher than today,” the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term research firm added.

A reverse trend

However, due to the dominating bear in the market, the quarterly total is going down. “Whilst 1Q19 remains almost a whopping double the volume than that for the same period in 2017 in USD terms, quarter-on-quarter on-chain activity for Bitcoin has been in decline since the end of 4Q17,” Diar stated.

The quarterly figures for 2019 also followed the declining trend by as 2019’s first quarter volume went down by 35 percent from the previous quarter.

“2Q19 has kicked off on a higher note compared to previous years,” Diar added.

Sudden surge in price

Bitcoin’s value reached around $3,200 in December 2018, exactly after a year it peaked at $20,000 a piece. The price of Bitcoin, however, rebounded drastically in April by gaining around $2,000 in 48 hours. The rally was not supported by any significant development in the market and was considered to be a speculative one.

This also pushed the demand for Bitcoin futures as the United States’ CME Group revealed that its Bitcoin futures contract trading volume reached record high on April 4th.