Newest Chainalysis Report Shows 37% of Bitcoin Addresses are ‘Economically Relevant’

In a new report released by Chainalysis, just 37% of Bitcoin (BTC) addresses in the network are ‘economically relevant.’ At the moment, there are over 460 million addresses created that are able to be operative. However, not all of them are active and most of them belong to the same individual or company.

As per the report released by Chainalysis, 37% of these addresses (close to 172 million addresses), are owned by companies or people that have Bitcoin. Nevertheless, 27 million just hold some amount of this virtual currency.

At the same time, 86% of the 172 million economically relevant addresses are owned by services such as exchanges or a darknet market.

Chainalysis shows that between August and October of the current year, around $41 billion of transactions were executed. However, the report marks that only $9 billion had real economic value. Chainalysis shows that 20% of the Bitcoin transaction value is economic, that is a final transfer between different people using economically relevant addresses.

Although there are different metrics to show how a network is growing, this data does not show the details of these addresses and transactions.

The report reads as follows:

“By looking beyond top-line indicators and linking activity to specific addresses, we’re able to offer a more granular, in-depth look at bitcoin network activity. Our deep knowledge of cryptocurrency helps organizations understand the space and make more informed decisions about their own offerings.”

According to the research firm Diar, institutional investors moved towards Over-the-Counter (OTC) markets. Coinbase registered a 20% increase in Bitcoin trading volume during OTC market hours.

It is always important to go behind the main data provided by different companies in the space. For example, CoinMarketCap was providing information about exchanges that were manipulating their volumes. As reported by the Blockchain Transparency Institute (BTI), around 80% of the most important Bitcoin trading pairs listed in CoinMarketCap was wash traded.