Connect with us
Active Currencies 14421
Market Cap $2,661,305,701,826.20
Bitcoin Share 50.00%
24h Market Cap Change $-2.17

Bitcoin transactions trail off after September surge

2min Read

The month so far has seen a dip in Bitcoin’s user activity. Amid this decline, the average transaction fee on the network continues to grow.

Share this article

  • Daily transaction count on the Bitcoin network has fallen to its lowest level since May.
  • Despite the drop in user activity, the average transaction fee continues to climb. 

After a surge in September, the number of daily transactions on the Bitcoin [BTC] network has been on a downward trend since the start of October, according to information retrieved from The Block Data.


Read Bitcoin’s [BTC] Price Prediction 2023-2024


The daily transactions count on the network observed on a seven-day moving average showed that the average number of weekly transactions completed on the network ranged from 400,000 to 500,000 between May and mid-September. 

By 20 September, the chain recorded a daily transactions count of 595,110, its highest since 16 May. 

After attaining this peak, BTC began to see a steady decline in transaction count. As of 9 October, only 284,000 transactions were completed on the network. This represented a 52% drop from the 20 September peak and an 11% month-to-date (MTD) decline. 

Source: The Block

Some Ws and some Ls

An assessment of BTC’s on-chain performance since the month started revealed a general decline in user activity. In addition to a drop in the daily transaction count, the network has also seen a decrease in its number of active daily addresses since the month started. 

This rallied steadily in September to reach a daily high of 1.11 million unique addresses on 15 September, its highest daily count in over a year. 

However, this has since declined, and by 9 October, the chain recorded less than 950,000 active addresses. 

Source: The Block

Moreover, the number of unique addresses involved in first-time transactions involving BTC on the network has also witnessed a dip.

Information sourced from The Block Data showed that this also surged in September to peak at 648,000 new addresses on 19 September. It has since declined by 37%. 


Is your portfolio green? Check the BTC Profit Calculator


A decline in a network’s daily active address signals less demand for its native coin, which can impact its price. Since BTC’s price rallied above $28,000 to briefly exchange hands at $28,400 on 2 October, it has since traded below $27,600, data from CoinMarketCap showed. 

Interestingly, despite the waning user activity on the network, the average transaction fee has risen steadily since the month began. At $2.83 as of this writing, the average cost of executing transactions on the BTC network has increased by 19% since 30 September. 

Source: The Block

Share

Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.