Bitcoin (BTC) continues to decline despite near-record daily transactions

Bitcoin (BTC) continues downtrend

While Bitcoin (BTC) continues its downward trend, the asset has recently recorded a high volume in daily transactions approaching all-time highs. According to a report by on-chain analytics provider Glassnode, “Daily Bitcoin transactions are nearing all-time highs, seeing explosive growth in 2023.”

Regardless of this news, Bitcoin has continued to move lower after the weekend plateau trading just between $29,300. Trading volume for the asset has also increased slightly, indicating a possible violent selloff.

Bitcoin records daily transactions approaching record highs

According to Glassnode, on the 30-day moving average, Bitcoin daily transactions have reached an amount of 348,700. While the peak level seen in 2017 remains at 379,000 transactions per day. This has proven that Bitcoin’s daily transactions are starting to approach the all-time high last around 5 years ago.

Furthermore, according to the Glassnode report, this increase in daily Bitcoin transactions is thanks to the Ordinal Inscriptions. The Ordinal Inscriptions also known as Bitcoin non-fungible tokens (NFTs), or Ordinals, are inscriptions (digital artifacts) inscribed on satoshis (sats) – small units of Bitcoin.

Glass node noted inscription accounts for approximately 30% to 40% of mined transactions and 10% to 20% of fees paid. Meanwhile, the remaining majority of transactions are of a monetary nature, often conducted through stock exchanges.

According to Glassnode, compared to Ordinal’s activity on the Bitcoin blockchain, BTC exchange activity is relatively low, representing approximately 30% of fees and transactions.

The trend of creating inscriptions initially became popular in February when users started inscribing NFTs on satoshis. However, the recent resurgence has been dominated by text-based inscriptions.

Glass node noted:

The number of Bitcoin transactions, address activity, inscriptions and Mempool overload is elevated. Which is the degree of HODLing, and supply acquired under $30k. Conviction remains.

BTC continues downtrend

Bitcoin (BTC) has yet to make any significant move in recent days. Instead, it has only seemed to pick up where it is ended its downward trend the last few weeks. In the last 24 hours, the top crypto has fallen almost 4% with a market price of $28,435, at the time of writing.

This downward trend follows a remarkable fall from the $30,000 region in recent weeks. So far, Bitcoin has a 24-hour range between a low of $28,315 and a high of $29,944.

Meanwhile, the BTC market cap remains in the green as trading volume signals sales pressure, indicates a possible continuous bearish trend.

Over the past week, Bitcoin’s market cap has risen from a low of $528 billion on April 24 to as high as $550 billion as of today. Trading volume has also increased from a daily trading volume of $15.4 billion to $19.8 billion, during the same time period.

Featured image from Unsplash, chart from TradingView