A report has revealed that Bitcoin is processing $7.3 billion per day in ‘true’ Transfer Volume. Here’s how this compares with traditional processors.
Here is the chart shared in the report that shows the trend in this metric for BTC:
As displayed in the above graph, the daily Bitcoin Transfer Volume has stood at a whopping $48.7 billion recently. This value is larger than the $36.2 billion per day that Visa processes or the $26.7 billion per day that Mastercard does.
This volume, however, is unfiltered, meaning that it contains all the noise that comes with a cryptocurrency blockchain, like transfers between the wallets of the same investor.
The analytics firm has come up with an approach to mitigate this problem:
Glassnode has pioneered the application of advanced filtering heuristics, which allow for the assessment of whether on-chain transaction volumes are economical in nature, or internal transactions such as wallet management by exchanges like Coinbase and Binance.
The modified version of the indicator to account for this is called the Entity-Adjusted Volume. This metric only keeps track of the transfers happening between two separate ‘entities,’ where an entity is a cluster of addresses that belong to the same investor.
“Once this filtering is applied, the economic transfer volumes are closer to $7.3 billion per day, totalling $2.9T across 2024,” notes the report. This value is lesser than the volume being processed by the traditional payment processors, but is nonetheless impressive.
In short, what this indicator represents is the total amount of capital that the investors as a whole have put into the cryptocurrency.
Bitcoin has seen a plunge of almost 3% in the past day as its price has come down to $101,000.
