Bitcoin’s on-chain transfer volume rose significantly over the past month, finally reaching a year-long high of 3.2 million BTC on September 9. At the same time, the visible activity in the chain when exchanging cryptocurrencies has decreased. Only 3.6% or 115,000 BTC was moved across trading platforms on the same September 9th.
Volume of Bitcoin transfers in the chain. Source: Glass knot.
Bitcoin Funds Flow Ratio. Source: CryptoQuant.
This doesn’t necessarily mean the volume Exchange trading has declined as centralized exchange trading almost always takes place off-chain. if anything, it has increased.
Bticoin trading volume on exchanges. Source: Kaiko.
Most of the activity in the chain is recorded on central exchanges when users deposit or withdraw their funds. Hence, this trend can actually indicate it Users are less likely to move their assets from one place to another.
Accepted The growth in Bitcoin’s transfer volume in the chain is likely not caused by activity within the exchanges, but may be due to increased uptake of the asset in the economy. The last time this metric was highest was on August 21, 2020 when it appeared to rise to nearly 25 million BTC. However, This seems to have been a bit unusual as we cannot exactly know what caused it.