Benzinga - The on-chain activity for Bitcoin (CRYPTO: BTC) witnessed a short-term burst of new addresses in the wake of the FTX fiasco but has since cooled off significantly.
What Happened: According to Glassnode insights, the monthly average of new BTC addresses is now leveling out to the yearly average baseline, suggesting that network usage is yet to achieve a consistent and steady recovery.
Despite a short spike in activity, the total value processed by the Bitcoin network has taken a sharp dive. The daily transfer volume has plummeted from its peak of $40 billion in the third quarter of 2022 to a mere $5.8 billion as of today.
This puts the daily settlement volumes back to pre-bull 2020 levels, signaling a retreat of large-scale institutional capital.
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This decline in the dominance of transactions with a value of $10 million and higher suggests a significant downturn in institutional-level capital flows. It is likely indicative of a lack of confidence among those institutions, and possibly of the expulsion of questionable capital associated with the FTX/Alameda entities. Despite this, the relative breakdown of transfer volume remains a primary contributor, with large-size transfers accounting for 19.0% of the total today, down from 42.8% prior to the FTX collapse.
Price Action: BTC was trading at $17,191 down 0.17% in the last 24 hours, according to Benzinga Pro.
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