Although Bitcoin witnessed one of the most challenging moments last year, data suggest that the Bitcoin blockchain has still lived up to the expectations, accounting for a large share of transactions.
Recent data from CoinMetrics, an on-chain data firm, indicate that despite the concerning prices, a surprising $8.2 trillion has been transferred via the Bitcoin blockchain over the past year. Thus, these figures reveal that an average of $260,000 has been transferred via the mentioned blockchain per second.
The graph below represents the trend of transactions on the Bitcoin blockchain over the past year.
Sources reveal that the magnitude of the transaction, given the prolonged bear phase, represents the increase in adoption and the role of the world’s largest cryptocurrency by market capitalization in the general financial system.
However, as per data, the number of transactions on the blockchain decreased significantly in the year’s second half in tandem with the asset’s price movement.
The 2022 timeline for Bitcoin has been tricky, with the asset undergoing freefall for the better part of the year and then a relief rally in early November. Some positive factors drove the rally in November; however, the rally had a minimal impact on the share of transactions.
Sources reveal that the transaction volumes might also be welcomed by Bitcoin proponents, who would likely see this count as a sign of the asset’s maturity to be able to be included in the mainstream financial sector.
Interestingly, some have also suggested that the extended bear phase has led some participants to predict that the asset will likely get down to free. The scenario also suggests that Bitcoin has operated in an environment of investor skepticism concerning factors like rising inflation and regulatory uncertainty in the past months.
In addition, Bitcoin has been affected by the collapse of the crypto exchange FTX, whose effects are projected to spread into 2023. Another report suggests that the impact of the price correction also resulted in Bitcoin millionaires plunging by over 70% in 2022.
The price correction might extend further, considering Bitcoin is still operating in an environment of high inflation and regulatory uncertainty. Indeed, if the market records a rally, the amount transferred on the Bitcoin blockchain will likely increase.
At the time of writing, the asset is trading at $16,815.60, a 0.17% decline from the past day but a 1.73% surge over the past five days.