BTC trading volume hits lowest level since March 2019, but regular trading remains stable

BTC trading volume hits lowest level since March 2019, but regular trading remains stable

Nic Carter, founder of Coinmetrics, tweeted that BTC transaction volume has just hit a new low since March 2019. Is Bitcoin dying? Let's investigate. According to its analysis, the decline in Bitcoin transaction volume is not due to a decrease in the number of normal Bitcoin transactions, but due to other on-chain factors.
First, there is a decrease in OMNI and Veriblock transactions. These protocols use “arbitrary data functions (specifically OP_RETURN)” on Bitcoin to verify and store third-party data on the blockchain. This does not involve moving BTC. However, this is changing quickly. Carter pointed out, “This is the TXN count after removing OP_RETURN. The non-Omni OP_RETURN transactions are mostly Veriblock. You can see the timing of the VB testnet changing in early 2019. It has also had less activity recently. Regular BTC transactions are pretty stable.”
Second, Bitcoin batching activity has clearly risen recently after Coinbase batched transactions. “Another way to confirm this is that the average transaction size is getting bigger. A sign of batching. It’s too early to call it an inevitable trend, but it’s worth watching.”
Finally, if a drop means death, we will likely see a spike in transaction volume first as more traders look to sell. Network strength and volume trends can be accurately analyzed over the medium to long term, rather than through sudden spikes. (CoinGape)