Bitcoin’s average transaction value is growing at a fast pace in 2020. It recently peaked at over $129,000, reaching its highest levels in more than a year.
Average transaction value goes down
On September 17, the average transaction value on the Bitcoin network surpassed $129,000 according to BitInfoCharts. The coin hasn’t touched these levels in more than one year. The number of addresses sending and receiving the cryptocurrency has also been on sustained levels since late August. The last time that the average transaction value of Bitcoin went above $121,000 was in August 2019. At the time, a few big transactions raised the average value to over $812,000 on average. However, that was an anomaly on the network.
In general, the average cost of Bitcoin transactions hasn’t been this high since late 2017, a time when the price of Bitcoin went up to all-time highs of about $20,000.
What does it indicate?
The latest rise in average transaction values suggests that there is heightened yet sustained activity on the Bitcoin blockchain. Other crypto networks are also witnessed in rising activity. The number of unique addresses that are sending and receiving transactions each day is also at its highest since 2017. Since August last week, the number of active addresses has averaged at about 850,000. During the peak of 2017, the number of active addresses averaged at 1 million.
The crypto ecosystem has been gaining popularity because of the rising number of interest-bearing products, decentralized financial products, etc. As the most prominent digital currency, Bitcoin has gained because of this rise. Futures trading for Bitcoin has also hit record levels on some exchanges. The number of Bitcoin exchanges established around the world also crossed the 10,000 mark.
Currently, the Decentralized Finance (DeFi) market is growing quickly, which is mostly built on the Ethereum network. However, even Bitcoin is able to gain because of increased interest in the overall crypto ecosystem.