Bitcoin Network VS Exchanges: The Volume Of BTC Transactions On-Chain Exceeds 3 Million
While there is a lull on crypto exchanges, the number of on-chain transfers on the Bitcoin network has increased dramatically. What is the reason for this trend?
Trading activity on the Bitcoin on-chain reaches an annual high
Over the past month, there has been a trend towards a shift in trading activity from exchanges to on-chain Bitcoin transfers. According to the data for September 9, the volume of Bitcoin transactions on the network reached 3.2 million BTC. This indicator is the maximum for 2020 and indicates that there are signs of a decrease in user activity on trading floors.
The downward trend in Bitcoin transfers on crypto exchanges is evident in daily data: only 3.6% of transactions are carried out on trading exchanges within 24 hours. In volume, this figure is about 115,000 BTC and is several times inferior to the number of transactions within the Bitcoin network.
This trend leads to the formation of several conclusions that may appear in the long term. Firstly, the decrease in the volume of trading activity on exchanges is not entirely correct to consider only from the side of a decrease in the interest of participants in the crypto community. These indicators confirm the desire of users to reduce the number of asset transactions between crypto-addresses. It may be due to the need to pay a commission or waiting for more favorable conditions on the crypto market.
Secondly, the increase in the volume of Bitcoin transfers on the network can be triggered by the growing interest of financial companies in attracting cryptocurrency to the economic sector. A striking manifestation of this trend is the development of payment cards, with the help of which users can convert cryptocurrency into fiat.