Bitcoin transaction volume is rapidly moving off of exchanges, which is a positive sign that indicates the market is beginning to mature as it becomes driven less by speculative trading and more by long-term investing and real-world utilization.
It is important to note that the decline in transactions taking place on exchanges also seems to indicate a surge in the number of over-the-counter trades being conducted by investors, which is a positive sign that points to an influx of large buyers into the market.
This could be a positive sign that bolsters the mid-term outlook of the market, suggesting that it may be seeing major inflows of fresh capital, despite BTC’s lackluster performance as of late.
It is important to note that its recent price decline has not come about due to any underlying weakness, but rather due to the turbulence seen in the stock market.
This has caused investors to grow jittery, which has adversely impacted volatile assets like Bitcoin.
Exchanges Lose Their Dominance Over Market Activity
NewsBTC reported earlier this week that exchanges now account for 20% of miner revenue, marking a drastic decline from where this same metric was in 2018.
According to analytics platform Glassnode, exchange fee dominance hit peaks of 41% in 2018, and it has been declining ever since.
“On-chain Exchange Fee Dominance shows the major role that centralized exchanges play in the Bitcoin ecosystem. 20% of all miner fees are currently