Recent on-chain data indicates a resurgence in the utility of the Bitcoin network, potentially signaling the path for another price surge.
Bitcoin’s Circulation Reaches 5-Month High
In a recent post on X, the analytics firm Santiment highlights the spike in Bitcoin’s “Circulation,” tracking the unique number of tokens moving on the BTC blockchain daily.
Usually, transaction volume is used to assess network utility, but it can be skewed by repetitive trading activities. Circulation addresses this by assigning equal weight to every token transacted, regardless of frequency.
High Circulation values indicate increased movement of unique coins, suggesting heightened investor interest in blockchain activities.
The graph depicting Bitcoin Circulation reveals recent significant spikes, following a period of low network activity. This rise signifies a revival of investor interest in utilizing the cryptocurrency.
The latest spike saw 244,000 unique tokens move on the blockchain, marking the most substantial surge since March amidst the previous ATH rally.
Historically, utility rises during bullish phases as investors focus more on the cryptocurrency, laying the groundwork for sustained price surges.
The recent increase in Circulation after a dip post-ATH might explain the previous struggle for positive momentum, with the current recovery displaying a different trend.
The analytics firm indicates, “Utility is gradually returning to Q1 bull run levels,” raising anticipation for potential price impacts.
Bitcoin Price Update
Bitcoin saw a recovery close to $70,000 before facing a slight setback and now trading around $66,000.
