Being a decentralized technology, Blockchain is used by a global network of computers, to jointly manage the manage the database that records cryptocurrency transactions. There is always a churn of news around Blockchain, as the upsurging value of Bitcoin and other cryptocurrencies rely on this technology. The Blockchain Developers have made this concept pretty simple and its UI design is kept user-friendly.
Quarterly, every year new trends of blockchain are defined and released within the State of Blockchain Report. Here’s a glimpse of the important trends of Blockchain in Q1 2018:
- Cryptocurrency Market
Unlike the previous quarters, Bitcoin suffered a 51% decline in Q1. A similar drop has been noticed in exchange volume, transaction value, and transaction count. This is not the scenario which is seen in only Bitcoin, most altcoins mirrored the same behavior. The cryptocurrency market capitalization suffered the loss of almost $348 billion.
- Market Matures
The cryptocurrency market has seen steady growth in Q1 after the introduction of Bitcoins at the end of Q4. After this, an upturn was noticed in both long and short positions. The quarter was ended with having 5,000 and 3,000 short and long positions respectively. A research at the Federal Reserve Bank of San Francisco says that the Bitcoin market and its price has been dropped as a fall in Bitcoin has been spotted.
- Taxes Appear High
Taxes have been the biggest concern to all the investors as the cryptocurrencies had started generating an estimated amount $70 billion in the global tax revenue in the year 2017, which is based on the average of various governments’ tax rates and on the total gains in the market. This tax parameter of cryptocurrency keeps on changing.
- Bitcoin Miners
All the ups and downs did not affect the Bitcoin miners, as over Q1 the slope of hash rate, i.e; the processing power amount devoted to securing the bitcoin network has deviated from the market capital. The hash rate of Bitcoin has held strong against the competition while the bitcoin cash cryptocurrency ranked second-highest in the race of hash rate.
- Fall In The Bitcoin Transaction Fees
The transaction fees on the bitcoin network have dropped drastically. At the end of Q4 2017, the transaction fees were $40 and in Q1 2018 the fees settled on an average of $9.49 per transaction. Besides bitcoin, other cryptocurrencies saw 60 to 90 percent declines in fees as well.
It was analyzed that the high fees might have discouraged users from transacting, but it’s seen that even after the fees came down people decline the transaction of cryptocurrency. Fee levels can also be a barometer of demand. As in Q4, we saw an increase in the fees due to more people buying into cryptocurrencies. So the statistics of reduction in fees could imply that demand of cryptocurrency transaction is shrinking.
- The Continues Growth In ICO
The rise of $6.3 billion is observed in the ICO activity in Q1. Over 25% of the funding in Q1 was accounted by Telegram’s $1.7 billion ICO. The second largest ICO after Telegram is Dragon, which offered $320 billion of the fundings. Still, the ICO is in a growing phase.
The growth of the average amount is almost doubled from Q4 to Q1, from $16 million to $31 million.
These are the top six important trends of Q1 2018, which is been followed by the majority of developers from the topmost Blockchain Development Company.