If bitcoin had a stable price, I would argue that it would even be more popular since there would be many investors who would consider it a safe investment. The price volatility of bitcoin is definitely a turn off to many people especially those who are looking for something that grows slowly and steadily. the future of bitcoin is undeniable at this point, especially after Japanese approval.
Investors are more active in trading because that volatile price can give them instant profit if they have a good information
to predict the price movement. Of course there are also who are into long term and I'm one of them,and I see my patience has paid off already.
I agree. the volatility of bitcoin is one of the manor factors why a lot of investors and traders are interested in it. of course once it gets stable, there would be positive effects but then I think these traders would now look to other alt coins to work with, thus decreasing btc traders in the long run