Bitcoin has Transferred One Trillion Dollars Worth in Value in 2018, Ethereum at Half a Trillion


One Trillion Dollars of Bitcoin Has been Transferred in 2018 Along With Half a Trillion of Ethereum

Amidst the crypto bear market, it’s easy to get down on crypto. Cryptocurrency, however, continues to thrive while prices decline. According to a new report, nearly $1 trillion of bitcoin has been transferred in 2018, with approximately $500 billion of Ether being transferred as well.

The report was issued by Coinmetrics, which did more than just calculate the total value of all bitcoin transactions. Instead, Coinmetrics removed unimportant transactions or unnecessary transactions – like transactions involving mixers or other privacy enhancement tools. They also ignored transactions where exchanges moved large amounts of crypto – like when Circle bought Poloniex earlier this year.

On the bitcoin blockchain, of course, all transactions are treated equally. However, the purchase of, say, a vehicle with bitcoin is obviously more meaningful than someone using a mixer to obfuscate the source of his bitcoin.

“From the perspective of the blockchain, all transactions are equally valid – but from the perspective of an analyst or economist, it’s useful to isolate only the meaningful economic transactions, so that’s what we’ve done here.”

Coinmetrics manually summed up data using shortcuts. Then, they underestimated the final figure to try to come up with a conservative number.

In other words, the total value of all bitcoin transactions so far in 2018 is likely well over $1 trillion, although many of those transactions were less meaningful. The amount of meaningful transactions came out to approximately $50 to $150 billion per month throughout 2018, giving a final total of around $800 billion for the year to date.

In January, for example, there were approximately $220 billion worth of Bitcoin transactions. In February, the amount dropped to $140 billion, then fell to around $100 billion in March, April, and May. In June and July, transaction volume dropped to $70 billion. In August, transaction volume – halfway through the month – is currently sitting at around $30 billion.

Ethereum has witnessed a similar trajectory. $120 billion of Ethereum was transferred in January. Transaction volume was reduced to $60 billion in February, then halved again to $30 billion in March. Unlike bitcoin, however, Ethereum experienced a surge in transaction volume in May, rising to around $60 billion. Since then, Ethereum has remained steady with a monthly transaction volume of approximately $30 billion.

It’s important to remember that price affects these sums. Even if the same number of bitcoins are transferred, that might lead to vastly different transaction volumes in each month.

For example, the year 2018 began with approximately 20 million ETH being transferred each day, or 20% of all circulating supply. Today, an average of 2 million ETH is being transferred each day, which means approximately $600 million worth of ETH – at today’s prices – is being transferred daily.

Coinmetrics also tried to take other transaction aberrations into account. When Circle acquired Poloniex, for example, a lot of tokens were moved to new wallets. Coinmetrics analyzed this transfer and tried to minimize it.

The end result of Coinmetrics’ analysis is that we have information about the real, useful transactions taking place on the bitcoin and Ethereum blockchains. The data shows a steady decline throughout the year, although that decline is also connected to declining prices. The numbers also seem to indicate that the decline has halted over the last few months, with transaction volume remaining relatively steady.

You can view the full Coinmetrics study at the Coinmetrics.io blog here: https://coinmetrics.io/introducing-adjusted-estimates/.

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