Cumulative Bitcoin Transfer Volume Surpasses $100 Trillion Milestone

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Bitcoin’s cumulative transfer volume (CTV) has topped $100 trillion in recent weeks, currently hitting $105 trillion, according to data from Glassnode.

CTV refers to the accumulated monetary value of transactions settled on a particular network. As a measure of activity, it can be used to gauge adoption and identify adoption trends.

Bitcoin Cumulative Transfer Volume Streets Are Ahead Of Others

The chart below shows the CTVs of Bitcoin, Ethereum, and Litecoin on individual logarithmic scales. Ethereum and Litecoin’s CTVs are $6.1 trillion and $3.7 trillion, respectively lower than Bitcoin’s by orders of magnitude.

Interestingly, Litecoin’s CTV has noticeably accelerated in 2022, as indicated by its representative line approaching a vertical position.

Source: Glassnode.com

The CTVs of the three tokens show some degree of resemblance, since the flat rise since the start of 2018, leading to a gradual upward trend through the start of 2021, followed by a strong expansion across the board.

After 2021, the three tokens converge at various points with each other. However, the relative evolution of Litecoin sees it overtake Ethereum and Bitcoin in recent weeks.

Commenting on Bitcoin’s CTV, Will Clemente said reaching the $105 trillion milestone was a “huge achievement” and showed how many millions “have used Bitcoin as a global settlement network.”

Criticisms

As the CTV is calculated using the price of the token at the time of the transfer, the impact of the movement on the chart is significantly greater during bull cycles than during bear cycles. This price differential arguably distorts the true measure of adoption.

Similarly, the CTV does not distinguish between volume related to effective settlement in exchange for goods and services and internal transfers and other commercial or speculative reasons for moving tokens.

Posted in: Bitcoin, Analysis

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