Bitcoin’s Total Transaction Volume Analyzed by Three Models
An on-chain analyst at Glassnode, @_Checkmatey_, has shared a chart that evaluates the cumulative transaction volume of Bitcoin (BTC) using 3 different models. The first model, “cumulative total volume,” tracks the raw amount of Bitcoin transacted on the network since its inception. Nonetheless, this metric may include movements on the blockchain that do not represent meaningful activity.
For example, the “change volume” refers to the return transfer of excess funds to the sender when making a transaction. To provide a more accurate image of the network, the “change-adjusted total volume” removes these transfers from the calculation. Another model, the “entity-adjusted” transaction volume, takes into account clusters of addresses belonging to the same owner.
Bitcoin (BTC) has remained relatively stable around the $25,800 mark, resulting in flat returns in the previous week.
The analysis of Bitcoin’s total transaction volume using different models outlines the need for accurate metrics in assessing the network’s activity. By considering factors such as change transfers and entity clusters, a more nuanced understanding of Bitcoin’s transaction volume can be obtained. Nonetheless, it is worth mentioning that Bitcoin’s price has remained stagnant recently, suggesting a lack of whole lot of market movement.
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