- The price of BTC increased by 69% in the first quarter.
- However, the blockchain saw a decline in activity over the same period.
User activity on the Bitcoin [BTC] The network declined in the first quarter despite the significant increase in coin prices during that period, Messari noted in a new report report.
In its report titled “State of Bitcoin Q1 2024,” the on-chain data provider noted that demand for the Bitcoin network declined over the 90-day period.
The average daily number of addresses that completed at least one transaction on the blockchain during the quarter totaled 895,000. This represents a 5% decrease from the 937,000 average daily active addresses on the Bitcoin network in the final quarter of 2023.
The decline in the number of active addresses on the blockchain led to a decline in the number of transactions completed there in the quarter under review. According to Messari, average daily transactions on the network fell by 15.3%.
Commenting on the possible reasons for the decline in network activity, Messari said:
“The changes suggest that the decline in transactions may be due to reduced activity from bots or “superusers” (users who transact frequently and account for a large portion of activity).”
Due to the decrease in the number of transactions on the network, the average fee per transaction also decreased. During the quarter, total fees on the Bitcoin network fell by 42%.
Some gain their name
The first quarter of the year saw a significant increase in BTC value. Between January 1st and March 31st, the price of the coin increased by 69%. The coin closed the quarter at $71,310 and reached a new all-time high this quarter.
Messari said that spot BTC ETFs, which received their long-awaited approval in January, were “perhaps the biggest catalyst” for the price increase seen. In the first quarter, all 11 ETF providers recorded inflows totaling $12.04 billion.
The district was also characterized by an increase in block size due to inscription activity.
Read Bitcoins [BTC] Price prediction 2024-25
According to Messari:
“Recently, on March 2, 2024, Marathon mined a block of 3.99 MB. Subsequently, F2Pool mined a block of 3.97 MB on March 30, 2024.”
Regarding network security, the hash rate increased by 19% compared to the previous quarter. As of this writing, the Bitcoin network hashrate is at 688.8973E, up 16% since the beginning of April BitInfoCharts Data.
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