Bitcoinโs 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 Bitcoinย (BTC) using 3 different models. The first model, โcumulative total volume,โ tracks the raw amount of Bitcoin transacted on the network since its inception. Nonetheless, this metric may include movements on the blockchain that doย not represent meaningful activity.
Forย example, the โchange volumeโ refers to the return transfer of excess funds to the sender when making a transaction. To provide a more accurate imageย of the network, the โchange-adjusted total volumeโ removes these transfers from the calculation. Another model, the โentity-adjustedโ transaction volume, takes into account clusters of addresses belonging to the same owner.
Bitcoin Price
Bitcoinย (BTC) has remained relatively stable around the $25,800 mark, resulting in flat returns inย theย previous week.
Hot Take:
The analysis of Bitcoinโs total transaction volume using different models outlines the need for accurate metrics in assessing the networkโs activity. By considering factors such as change transfers and entity clusters, a more nuanced understanding of Bitcoinโs transaction volume can be obtained. Nonetheless, it isย worthย mentioningย that Bitcoinโs price has remained stagnant recently, suggesting a lack of wholeย lotย of market movement.
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