The Bitcoin network saw an increase in trading activity in the days following the halving, on-chain data shows. Although the just concluded the halving brought a lot of attention When it comes to Bitcoin, the recent increase in trading activity can be attributed to something else.
According to data from on-chain analytics platform IntoTheBlock, the number of daily BTC transactions experienced rapid growth in recent days to reach a new high of 927,000 thanks to a new token standard called Runes.
Daily Bitcoin Transactions Hit New Record
The price of Bitcoin has skyrocketed since the start of the year as interest in the leading cryptocurrency has exploded. All this new interest means more people are buying, selling and trading BTC, which has led to a huge increase in the number of daily transactions.
Despite the increase in activity, the number of daily transactions did not exceed the last four months’ record of 724,000 until recently this week.
The main catalyst for this surge in activity is the recent launch of the Runes token standard on the Bitcoin blockchain. The Runes Protocol is a new token standard on BTC that provides users with a more efficient way to create fungible tokens.
The additional functionality provided by Runes opens up new possibilities for Bitcoin, allowing users to create non-fungible tokens more efficiently than the existing BRC-20 token system.
Bitcoin is now trading at $63.711. Chart: TradingView
The standard of Runes tokens immediately increased among developers and users after its launch, making up over 68% of recorded Bitcoin transactions. According to Dune’s analytics dashboard, the number of Runes transactions jumped to 753,000 on Tuesday, April 23. As a result, the total number of transactions on the day exceeded 927,000 to break the record of 724,000 set in December 2023.
Bitcoin Hit a New High in Daily Transactions!
Following the launch of Runes, the number of Bitcoin transactions increased rapidly, reaching 927,000 on Tuesday. This beats the previous high of 724,000 set in December 2023. pic.twitter.com/30JXbrLmdR
– Intotheblock (@intotheblock) April 26, 2024
On the other hand, the hype around the Rune Token standard seems to have faded so quickly. The number of transactions on Runes has now fallen to 104,800 in the last 24 hours, representing 26% of the total number of transactions.
Bitcoin Price Prediction
At the time of writing, Bitcoin is trading at $63,711 with price resistance now around $64,500. The price trajectory of Bitcoin can be very difficult to predict. Many Bitcoin analysts and traders are still eagerly awaiting the bullish effect of the just concluded halving on the price of the cryptocurrency. A Bitcoin The bull flag has just been formed which suggests the possibility of an uptrend very soon.
However, crypto expert Peter Brandt believes that Bitcoin may have already reached its peak in the current market cycle. His theory is based on exponential decay thesis which shows that the Bitcoin price gain percentage has decreased over successive market cycles.
Featured image from Pexels, chart from TradingView
