Transactions worth over 8 trillion dollars made on the Bitcoin blockchain in 2022
Although Bitcoin (BTC) faced one of the most challenging moments in 2022, data indicates that the BTC blockchain still accounted for a significant number of transactions.
Despite the depressed prices, a staggering $8.2 trillion was transferred via the Bitcoin blockchain in the past year. The figure works out to an average of $260,000 per second, data estimates from the crypto analytics firm CoinMetrics indicates.
Implication of Bitcoin’s Blockchain Transactions
The scale of the transaction amid the bear market highlights Bitcoin’s possible increased adoption and its role in the overall financial system. From the data, the number of transactions on the blockchain plunged significantly in the second half of the year in line with the asset’s price movement.
As Bitcoin underwent a freefall for much of 2022, the number one digital asset by market capitalization underwent a relief rally in early November after receiving a boost from positive macroeconomic factors. However, the rally appears to have had a minimal impact on the number of transactions.
The transaction volume may also be welcomed by Bitcoin supporters, who may see the data as a sign of the asset’s maturity to earn an integration into the mainstream financial sector. Interestingly, the extended bear market has led skeptics to suggest that Bitcoin is likely to plunge to zero.
In particular, Bitcoin operated in an environment of investor skepticism, with the asset hampered by factors such as rising inflation and regulatory uncertainty.
Bitcoin still faces uncertainty
At the same time, Bitcoin has taken a hit from the collapse of the FTX crypto exchange, the effects of which are projected to spread into 2023. The impact of the price correction also resulted in Bitcoin millionaires plunging over 70% in 2022, according to a Finbold report.
In addition, the price correction may extend further, considering that Bitcoin is still operating in a high-inflationary environment with uncertainty regarding monetary policy from the Federal Reserve.
In fact, if the market registers a rally, the amount transferred on the Bitcoin blockchain is likely to increase.
Bitcoin price analysis
At press time, Bitcoin was trading at $16,844, having made minor gains of less than 1% over the past 24 hours. On the weekly chart, BTC was up over 1%.
As it stands, the flagship cryptocurrency also controls a market cap of around $324.37 billion. As economic uncertainty prevails, projections indicate that Bitcoin is likely to undergo an extended price correction in 2023.
Especially the machine learning algorithm at Price predictions indicates that the asset may trade at $15,532 on January 31, 2023.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
