It has, therefore, acted as a leading indicator of Bitcoin's 'health'. Historically, if there is not sufficient volume travelling through the blockchain then a Bitcoin bull run cannot begin.
The efficacy of this tool is likely to diminish over time for three main reasons:
1. More bitcoin is being held off-chain on exchanges. 2. Growth over time of layer two solutions such as the Lightning network. 3. More Bitcoin held en-mass by third-party companies who allocate their clients purchases within their large wallets - meaning that a transaction is not recorded on the blockchain but is instead recorded on the third party database.
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