Flagship cryptocurrency, Bitcoin continues its rally as it breaks the $56,000 trading zone.
This comes as the Bitcoin network’s daily settlement value hit an all-time high (ATH) of $31 billion.
Bitcoin has been on a massive rally since the first day of October, which saw the asset rally by approximately 30%, from $43,790.90 to currently trade at $56,715.61, as of the time of this writing.
Although we are not seeing a significant move in altcoins, except from meme coins like Shiba Inu, which made its way into the top 20 by market capitalization, many analytics are speculating that the overall cryptocurrency market will continue its rally sometime in the fourth quarter of the year.
As Bitcoin is heading towards its previous all-time high, the network is processing more transactions than ever before. As previously mentioned, according to on-chain analytics data, on the 6th of October, the daily settlement value hit a new record, which means that the Bitcoin network is settling transactions worth $31 billion. This record high marks an increase in the network’s daily settlement volume by almost 40x since the beginning of 2020.
Since that day, data from Coin Metrics revealed that the daily settlement volume has since pulled back sharply, with the Bitcoin network settling $11.6 billion worth of transactions as of yesterday.
What they are saying
On-chain analyst, Willy Woo commented on the uptick in activity and settlement value over the weekend, tweeting that the volume of money moving on Bitcoin’s blockchain currently dwarfs that of major centralized payment networks, Visa and Mastercard in the United States.
He tweeted, “[The Bitcoin network is] presently doing ~$190k per second. Compare this to $130k per second by Visa for US customers and $55k per second for Mastercard.”
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Anthony Pompliano, the moderator of the best business show stated, “There was $31 billion of value settled on the bitcoin network in a single day last week. This is an all-time high for a single day of settlement value. The global, decentralized payment system continues to become more dominant.”
Chinese media outlet Wu Blockchain also commented on the increase stating, “Data from Glassnode shows that in the past month, huge transactions (> $10M) on the Bitcoin chain has grown rapidly, with the highest proportion exceeding 70%, setting a record high.”
Data from Bitinfocharts reveals that the average value of a transaction executed on the Bitcoin network has also been steadily increasing over the past three months to tag $732,000, an increase of 273% since the beginning of July.
Coin Metrics puts Ethereum’s daily transfer value to currently stand at $5.3 billion. Ethereum had briefly flipped Bitcoin’s daily settlement volume in early September, but Bitcoin regained its lead within a couple of weeks.