Data from CryptoCompare shows that bitcoin trading volumes on the eight major exchanges tracked on the CoinDesk 20 have passed $11 billion, a new all-time high from the previous record during 2017’s crypto bull market.
“This is first and foremost a sign of how much bigger and mature the industry is, with a lot more money flowing on these exchanges,” Bendik Norheim Schei, head of research at Arcane Research, told CoinDesk. “It is great to see higher volumes, making the market more liquid and efficient.”
The surging volume due to Monday’s sell-off came in part from newcomers to the market, according to Schei.
“Some of this volume is definitely from new and unexperienced investors entering the market for the first time and panicking when the price starts falling,” he said. “These corrections are necessary and healthy, even in a bull market.”
At the same time, the number of active bitcoin addresses has also broke its previous record on Jan. 8, according to data from Glassnode. “At its highest point last week, over 1.3 million bitcoin addresses were active in a single day,” the on-chain data analytics firm wrote in its weekly market report on Jan. 11. “This continued spike indicates an impressive level of new adoption and activity for bitcoin, and suggests that the number of market participants in the network may be higher than ever before.”
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