Average Bitcoin transaction value shoots up by 500% from July
The value of the average Bitcoin transaction has risen by at least 500% since July of this year. According to BitInfoCharts, which is a crypto market research firm, October 20 recorded the higest average daily Bitcoin transaction value so far this year, at $151,000. This is much higher than Ethereum's highest average transaction value, which is sitting at $793 for 2020. A number of high-profile investors have entered the Bitcoin market this year, including Square, which bought $50 million in Bitcoin. There has been no substantial change in the number of active Bitcoin addresses, and this figure has been moving between 650k and 970K for the past few months.
Why it matters: It is clear that institutional investors have entered the Bitcoin market, and are also looking to buy other major cryptos, such as Ethereum. As Bitcoin moves into the role of a reserve asset, we can expect that transaction value will continue to increase, as larger investors need to move more value around. While this might be good for the price of Bitcoin, it may not mean wider use of the token at a retail level. Other tokens, such as XRP, make more sense as a means of payment for smaller items, as the transaction costs are far lower, and the system is faster.
