Bitcoin price weekly analysis: Lightning network goes live
Price of bitcoin has dropped but with encouraging signs in the development community.
- Lightning Network goes operational on Mainnet
- Market cap remains solid around 35%
- Trading volume remains within steady range
A lot of excitement has continued to build in the bitcoin community this week as the Lightning Network continues adoption across Mainnet. As was reported during the week, the Lightning Network could be making inroads to solving bitcoin’s major issues of scaling and maintaining lower transaction fees.
The price of bitcoin began the week at US$12,618.20, coming off a severe week that saw bitcoin’s market capitalisation fall by nearly half. Having seen the price of bitcoin fall from December highs of over US$20,000, traders will be pleased to see bitcoin trading in relative stability. (All prices from CoinMarketCap.)
After dropping to the week low of US$10,129.70, the price of bitcoin has levelled off at a comfortable margin in the mid to low US$11,000 range. The price of bitcoin sat at US$11,490.30 as at the time of writing.
Market capitalisation has dropped somewhat, although compared to the previous week the drop of US$42 billion has been quite modest. Bitcoin’s market cap began the week at US$212.1 billion dropping to a low US$170.5 billion.
Bitcoin’s market capitalisation has since stabilised, closing out the week trading comfortably at US$199.2 billion.
Bitcoin’s overall market dominance has remained strong, dropping only slightly over the week. Beginning the week at 35% of total cryptocurrency market capitalisation, that figure has only been reduced slightly to 34.47%.
This shows that bitcoin is remaining a market favourite after emerging from a volatile month of huge sell-offs.
24-hour trading volume has shown remarkable stability throughout the week. At the start of the week, 24-hour trading volume recorded a consistent range between US$12.4-US$11.4 billion.
Those numbers dropped as Australia Day celebrations got underway on 26 January 2018, dropping to the week’s low of US$8 billion in 24-hour trade. Having rebounded from the low, 24-hour trading volume has since hovered in a range between US$9-11 billion.
Sentiment may be further improved by the ongoing reduction in bitcoin transaction fees. As was reported in last week’s analysis and also during the week, average transactions have come off the boil, which is believed to be in connection with Lightning Network adoption.
That trend has continued with the average bitcoin transaction fee now at US$10.52. Coming off December highs of over US$40 per transaction this means that bitcoin’s competitiveness as a form of money is still surviving.
If the ongoing implementation of the Lightning Network is successful, transaction fees may become almost non-existent but only time will tell.