According to a Crystal Blockchain study, the aggregate transaction volume for the first three months of 2020 saw a twofold increase compared to the same period last year, when this figure was at $8,2 billion. This year, the total volume of Bitcoin transactions measured at $15 billion. 

How was the study carried out?

The study was based on data for 436 exchanges carried out between 2013 and the end of the first quarter of 2020 in 70 countries around the world. Crystal Blockchain set out to analyze the Bitcoin market and its transformation across three stages in the evolution of cryptocurrency exchanges. External factors that directly impacted the operation of Bitcoin, such as changes in the global financial market, were also assessed.

This year, Crystal Blockchain made the interaction between G20 countries the main focus of their study. This path was chosen because ‘The Group of Twenty’ demonstrated greater attention towards the cryptocurrency market. For example, in 2019, G20 announced that FATF standards and the Fifth Anti-Money Laundering Directive (AMLD5) issued by the EU will be extended to include cryptocurrencies. 

Key findings in the Crystal Blockchain study

  1. In 2020, the United Kingdom, the United States, Hong Kong, and Singapore spearheaded the list of countries with the largest numbers of registered cryptocurrency exchanges. 
  2. At the time of the study, around 18% of all global exchanges were not registered in one particular country (or their registration information was not publicly disclosed). 
  3. The number of Bitcoin transfers between exchanges was reduced nearly by half. This is due to an increase in control from G20 countries. 
  4. Compared to the first half of 2019, when the total volume of Bitcoin transactions measured at $8,2 billion, the first quarter of 2020 showed a historical maximum at $15 billion. 
  5. Although the United Kingdom held the largest share of transactions, the Seychelles Islands were at the top of the ranking by total Bitcoin volume - 37% of the total. Experts link this finding with the number of popular cryptocurrency exchanges registered in this island state. 

For a more detailed overview, check out the interactive map Bitcoin Flows Analytics.

What does this mean for the market?

These figures point towards increasing activity in the cryptocurrency market, despite the ongoing crisis in the global financial system. Another fact pointing towards the role of cryptocurrencies as an anticrisis asset is the fact that major crypto exchanges noted a significant increase in users in March. This was the case for Kraken, OKEx, Bitfinex, Paxful, and Luno. For instance, Kraken noted an 83% increase in new registrations, with 100% new registrations on the peering exchange Paxful, 50% on Luno, and 30% on Bitfinex.