Bitcoin
Mid-sized Bitcoin transactions increase, reflecting market maturation and retail growth
Onchain Highlights
DEFINITION: Distribution of the relative volume in the chain adjusted by the entity by the USD value of the transfers.
Bitcoin’s relative transfer volume, when adjusted by entity and categorized by transfer size, exhibits nuanced trends across various transaction ranges. As of January 2024, transfers under $1,000 constituted a small portion of overall activity. Notably, transactions between $1,000 and $10,000 experienced a slight increase, reflecting incremental retail participation.
Transfer volume divided by size: (Source: Glassnode)
Larger transfers, ranging from $10,000 to $100,000 and from $100,000 to $1 million, demonstrated an increase, maintaining around 20-30% of the total volume. This suggests an increase in institutional activity. Meanwhile, the $1 million to $10 million range also saw growth, while transfers over $10 million declined.
Between mid-January and April, volumes above $10 million resurfaced before falling, reaching a low in May.
Levels for the largest transfers rose again at the end of May and have stabilized since then. Other bands moved relatively, with the exception of transfers under $100,000, which remained stable.
Compared to historical data since 2017, the past year has seen a reduction in the dominance of smaller transactions, replaced by medium-sized volumes, especially those above $100,000. This shift highlights a maturing of Bitcoin’s user base, with an increasing reliance on significant transactions, potentially in line with post-halving market conditions and a mature institutional footprint.