Difficult to ignore the current mutation that seizes Bitcoin since the approval of his ETF Spot made in USA. An obvious institutional surge, the consequences of which are currently difficult to estimate. Could this be the planned abandonment of its network for the benefit of centralized structures?
Bitcoin: a confirmed mutation
ETF approval Bitcoin Spot on the American market in January of last year marked a historic hinge. Indeed, it was during this period that The cryptocurrency sector has officially become frequentable For traditional investors hitherto exposed to diverted solutions such as the actions of the Strategy company.
A paradigm shift whose consequences are still difficult to estimate, 1 year and a half later. Even if we can admit without too much risk that The period of the Bull Run Explosive Runs seems compromised to say the least, Despite a potential of X100 still possible… on 1 or 2 decades to come.
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This is the reason why the last weekly point The on-chain Glassnode analysis structure is trying to lay an inventory. Indeed, there is talk of The current mutation of the Bitcoin networkfaced with what is identified as a reinforced presence of institutional structures.
Bitcoin: On-chain settlement volume by transaction size
According to data published by Glassnode, these are now ” Large entities [qui] increasingly use the Bitcoin network for value transfer ». On-chain transactions are formal, 89 % of operations carried out relate to amounts greater than $ 100,000. At the same time, transactions lower than this threshold fall at 11 %while the costs show historically low levels.
This trend strengthens the opinion that wealthy participants are becoming more and more dominant within the on-chain activity.
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“A ghost town on-chain”
An observation that pushes Glassnode analysts to ask an essential question: The Bitcoin network would be emptying of its traditional users ? Especially in the face of An absence of congestion which demonstrates a notable divergence compared to the previous bruise cycles, during the summits of the BTC.
But then, What destinations have these volumes were moved? The answer seems unequivocal. Users now prefer go through centralized platformsin order to access their ever -supplied financial instrument ranges.
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Bitcoin: volume off-chain vs on-chain
For this reason, ” the influence of centralized exchanges is becoming more and more important », To the point of facilitate the majority of the negotiation activity associated with Bitcoin. Result : ” The scale of the spot volume is often comparable in size to the daily volume adjusted on-chain », With a strength arrival of derivative products such as term contracts and options.
The growth of Spot and derivative volumes highlights a change in activity, with an ever greater share of the migrant volume of the Bitcoin network to off-chain sites. By comparing the negotiated volume off-chain (spot, term contracts and options), with the value set to the network, we note that the volume off-chain has regularly been 7 to 16 times higher than the volume on-chain.
The bitcoin blockchain would be becoming becoming The privileged playground for institutionalwith private users now largely established on centralized exchanges, by simplicity and attraction for the many options offered. Is it necessary to recall that this choice exposes directly to logic: “not your keys, not your cryptocurrencies”. Welcome …
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Source: Glassnode
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Passionate about cryptocurrencies and the principle of decentralization for many years, I want to share this experience with the greatest number. I also focus on deciphering the issues associated with the evolution of this ecosystem within traditional finance.
