Since the beginning of 2019 many onchain metrics began flatlining indicating a potential floor of support and intrinsic user interest in the network. As of the beginning of May, however, that interest has once more started growing across the board according to data provided by BitInfoCharts.
The network interest does not appear to coincide with market value and looks to be a potential delayed response, although it remains to be seen if this action is an anomoly and will eventually return to the mean.
The network has seen increases across a number of key data sets most notably the $USD value being sent peaking at over $1.6Bn in a single day on 16th May. It has since settled around $500m up from ~$170m. These numbers still pale in comparison to the inital 2017 runup in price where values regularly exceeded $2Bn and hit an eye watering $12Bn daily at the highs.
The Average Tx value has also seen an increase from around $7k to $20k with a peak at $47k. Such sizeable transactions indicate the network is still primarily being used by affluent individuals to avoid traditional monetary transfer fees or as a speculative asset in which to invest. Not that this is necessarily bad, however, it runs contrary to the idea of these networks being used by the everyman for smaller daily payments. Then again we are beginning to see use of Lightning networks to handle those types of micro transactions while onchain remains very much macro focused where it would be unfeasible to route larger volumes.
Active Addresses have also seen a rise and peaked at over 80k, however this does not necessarily indicate more network participants as anyone can issue a large number of addresses as is common practice with exchanges managing deposits and withdrawals. What’s more telling however, is that the number of daily transactions has risen from 20k to 27k. Again far below the price peak of $400 but an early sign that more intrinsic usage is starting to pick up.
All these metrics appear to have jumped with this latest recent monster rally up in market price but not proportionally. Price has by far and away ran away from any onchain metrics meaning while this growth is positive it is not currently sustainable and we could see a pull back. Otherwise we may risk finding ourselves in another bubble senario sooner than we realise.