In 2024, Bitcoin saw a significant uptick in user activity, highlighted by the network handling an impressive average daily volume of $8.7 billion.
Glassnode, an on-chain analytics firm, recently reported on Bitcoin’s Transfer Volume trend in a post on X. This Transfer Volume measures the total amount of Bitcoin moving in transactions across the blockchain. Specifically, the version discussed by Glassnode focuses on transactions between different entities, filtering out transfers within addresses owned by the same investor. These entity-to-entity transfers provide a clearer view of genuine economic activity on the Bitcoin network, rather than mere internal reorgs of wallet contents by the same person.
The firm’s recent data highlights a graphical representation of this indicator over the past few years. Interestingly, Bitcoin’s Transfer Volume surged when the price exceeded $100,000 towards the latter part of 2024. However, this has since calmed down.
Despite this cooling effect, the overall activity throughout the year still marked an increase in network activity. The 365-day moving average (MA) of the Transfer Volume is now at $8.7 billion, underscoring the vast economic undertakings involving Bitcoin in 2024, totaling an enormous $3.2 trillion. This figure, according to Glassnode, signifies Bitcoin’s significance as a vehicle for substantial financial exchanges.
Moreover, the Realized Cap of Bitcoin during this period showed notable growth. This metric, which reflects the value based on the last transaction price of each Bitcoin, offers insights into the actual capital invested by holders. Glassnode’s chart reveals this upward trend, noting that the Realized Cap has climbed significantly since the lows of November 2022. It gained $450 billion and now stands at approximately $850 billion.
Shifting focus to the Bitcoin price, despite recent recovery efforts, the price couldn’t maintain momentum and has settled back to $98,400.
This impressive economic activity and capital inflow demonstrate Bitcoin’s enduring role and growing traction as a dominant player in large-scale financial transactions. The developments underscore a dynamic year for Bitcoin amidst broader financial landscapes.
