Earlier this year, when the price of bitcoin compared to the record marks December 2017 fell more than 60%, and decreased another very important indicator is the number of transactions in the blockchain per day. In comparison with December of last year this figure has decreased almost twice, reaching a record-low level in the last two years.
«We have seen a cycle of boom, which is now slowing down, — explains the chief investment officer of the London company Newscape Capital Group Charles Morris (Charles Morris), perhaps we are entering a period of market downtrend».
According to information provided by the research company Blockchain.info the average number of transactions decreased from 400 000 transactions per week in mid-December 2017 200 000 last week. This figure is comparable to when bitcoin was trading at below $ 500. The situation with transactions awaiting confirmation on the network of Bitcoin, the situation is even worse. This number has decreased from 130 million bytes per week in the beginning of January up to 30 million now.
The community offers plenty of explanation for the slump in the cryptocurrency market, from software problems to unpleasant news about the upcoming regulation in different countries. What’s more interesting is why the partial restoration of bitcoin prices and the decrease in commissions in February the number of transactions has not returned to previous volumes. This question leads some investors to the idea of a possible decline in the popularity of cryptocurrencies.
Other members of the cryptocurrency community, however, believe that the low volume of transactions in the blockchain does not necessarily mean problems for bitcoin. They call this situation an indicator of a healthy stabilization and maturation of the financial market.
According to the head of investment company LDJ Capital David Drake (David Drake), likely courses of cryptocurrency this year will go up again. He believes that by the end of the year bitcoin will reach $ 35,000.
The decline in transaction volumes can also be attributed to the «inertia» after a long period of high commissions and slow confirmations.
«We are mindful too slow and expensive transactions, and to forget it, it will take time, says Drake, but all will return.»