A recent report from CME Group, a leading derivatives marketplace, suggests Bitcoin (BTC) has reached a new milestone – daily on-chain transaction volumes rivaling payment processing giants Visa and Mastercard.
This bullish news comes courtesy of a collaborative effort between CME Group and crypto analytics platform Glassnode. Their report, titled “Digital Assets: Insights and Market Trends,” dives into the first half of 2024 (data mostly as of May 31st), highlighting a positive trend across the cryptocurrency market.
Bitcoin’s Impressive Volume Surge
For context, only heavyweights like gold ($162.6 billion) and the S&P 500 stock index ($253 billion) surpass Bitcoin’s daily volume. Interestingly, CoinMarketCap data corroborates this, with Bitcoin averaging a daily trading volume of $29.68 billion over the past nine days, peaking at $41.6 billion on July 16th. This surge reflects the recent market rebound.
A Deeper Look: Filtering Out the Noise
While the unfiltered volume is impressive, Glassnode goes a step further by applying a filter. This filter considers the economic nature of Bitcoin transactions, removing internal transfers between major exchanges like Binance and Coinbase. This adjustment results in a more precise daily volume of $6.5 billion for Bitcoin.
Capital Inflows Signal Investor Confidence
Beyond volume, the CME Group report highlights a significant capital influx into the Bitcoin market during H1 2024. This can be attributed, in part, to the success of spot Bitcoin ETFs (Exchange Traded Funds) launched in the US. Data from Farside Investors reveals a net inflow of $16.5 billion into these products since January, signifying strong investor confidence in Bitcoin’s future.
The Takeaway: Bitcoin’s Maturation
The findings from CME Group and Glassnode paint a promising picture for Bitcoin. Reaching daily volume levels comparable to established payment processors signifies a significant step towards mainstream adoption. While the overall market sentiment remains dynamic, Bitcoin’s continued growth and the influx of capital suggest a maturing asset class with the potential to disrupt traditional financial landscapes.
Also Read: Binance User Funds Soar 150% Despite US Crackdown: Crypto Conviction or Cold Feet on Stablecoins?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making anlsoy investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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