Bitcoin’s Impressive Daily Transfer Volume and Its Comparison to Traditional Payment Platforms
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Bitcoin’s Daily Transfer Volume Reaches $7.3 Billion
A recent report, in collaboration with the CME Group, highlights the current state of Bitcoin’s Transfer Volume, as analyzed by the on-chain analytics firm, Glassnode. This metric measures the total amount of Bitcoin transacted on the blockchain.
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An insightful chart accompanying the report illustrates the trends in Bitcoin’s Transfer Volume over the years:
The daily Transfer Volume on the Bitcoin network has recently reached an astounding $48.7 billion. This figure surpasses the daily volumes processed by major traditional payment processors such as Visa, which handles $36.2 billion, and Mastercard, processing $26.7 billion. However, this massive volume includes various transactions like wallet management by exchanges, which may not represent actual economic activity.
Refining Bitcoin’s Transfer Volume with Entity-Adjusted Metrics
To address this, Glassnode has developed a sophisticated method for filtering out non-economic transactions. This involves identifying transfers between distinct entities, where an entity is a collection of addresses controlled by a single investor. The refined metric, known as Entity-Adjusted Volume, captures only transactions between separate entities.
According to the report, after applying these filters, the economic transfer volume stands at approximately $7.3 billion per day, amounting to a total of $2.9 trillion throughout 2024. Although this figure is lower than traditional payment processors, it remains a significant testament to Bitcoin’s growing role in the financial world.
Understanding Bitcoin’s Realized Cap Growth
The report also sheds light on the “Realized Cap” of Bitcoin, which evaluates the total value of the Bitcoin supply by considering the price at which each token was last transacted. Essentially, this metric represents the cumulative capital investors have poured into Bitcoin.
From the data, it is evident that the BTC Realized Cap was at $400 billion in November 2022, coinciding with the bear market’s nadir. Since then, it has surged to a staggering $872 billion. Glassnode suggests that Bitcoin has absorbed an impressive $472 billion of new capital inflows during this ongoing market cycle.
Current Bitcoin Price Trends
In recent developments, Bitcoin’s price has experienced a decline of nearly 3% over the last 24 hours, bringing its value down to $101,000.
The accompanying chart illustrates the fluctuations in BTC’s price over the past five days:
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