Nic Carter, Willy Woo Spotlight CoinMetrics Data: 35% Of Bitcoin Transactions Are Via Crypto Exchanges
Cryptocurrency exchanges have taken a significant role when it comes to the transition of capital across blockchain networks. One Twitterati, Willy Woo, tweeted that 35% of all on-chain transactions involve cryptocurrency exchange. This means that one out of every three bitcoin transactions involves an exchange.
~35% of on-chain outputs is traffic to and from exchanges.
Common view: Bitcoin’s purely for speculation.
Alternative view: it’s flows of capital funding its way into and out of a new class of Store of Value.
— Willy Woo (@woonomic) September 26, 2018
Woo hypothesizes that there are two reasons for such transaction patterns. First, Bitcoin is purely a speculation vehicle and continues to dominate simply in a trading capacity or the transactions represent the flow of capital into digital assets. Second, bitcoin is becoming a store of value.
Although it is more likely that the activity can be attributed to trading activity, its price stability indicates that it has also become a store of value. Recently, the cryptocurrency reached a low point in volatility.
In any event, the high trading volume on crypto exchanges may continue in the next few months. According to a recent report by Satis Group, an ICO advisory group, the global cryptocurrency trading volume will grow by 50 percent in 2019 and will continue to grow at 9 percent CAGR through 2028.