Small on-chain transactions, meaning those of less than $1,000, are hovering around their year-to-date average, though the mean-transaction size has been increasing, according to Noelle Acheson, head of market insights at Genesis, who compiled Coin Metrics data. Meanwhile, the amount of Bitcoin held in small addresses -- those with less than one coin -- is climbing at a fast pace, Glassnode data show. “This suggests that retail is participating, just not yet in the kind of size that would add more momentum to the overall market,” she said.
Retail investors are going to be a “fundamental” piece of the success for crypto and blockchain adoption, and institutions will be the next leg of growth, said David Kroger, digital data scientist at Cowen Digital. There’s a network effect at play: as at-home traders pile in, that can build momentum and greater masses may decide to also get in.
“So getting more users on the blockchain, involved in the ecosystem and the space, whether that is through exchanges -- decentralized or not -- it’s going to be key to growth,” he said.
This article was provided by Bloomberg News.