New York Daily Indicator Group (NYDIG) reported that Bitcoin’s annual transaction volume has been on the rise. This gave bitcoin bulls another reason to rejoice. The report revealed that the BTC network processed $3 trillion in payments in 2021 compared to $886 billion for 2020.
Bitcoin now surpasses American Express and Discover for annual transaction volume. Last year, American Express processed $504 billion and $1.28 trillion, respectively. In the past 12 months, Visa and Mastercard have processed more transactions than the Bitcoin network.
Due to significant growth in transaction volumes, Bitcoin has moved up to the third spot in this ranking. The 5-year compound annual growth rate of transaction volume has shown that the growth in transaction volume, although not always consistent with year-to-year growth, has maintained a rapid pace. “Transaction volumes increased by almost 100% annually over 5 years at the end of 2021,” NYDIG’s report highlights.
BTC is the top financial service provider in terms of annual transaction volume growth over the past 5 years.
The Bitcoin network saw a significant increase in users due to growing popularity among institutional and retail customers. Strong whale movements as well as exchange flows fueled the latest increase in annual transaction volume. Although the price of the digital asset is down significantly in the past few weeks, the recent surge in outflows suggests that BTC whales are moving the crypto asset from trading platforms.
In the last week, 40,785 BTC coin were removed from exchanges. This week saw the largest outflow of Bitcoin coins since September 2nd. “The continued trend of coins moving into cold wallets is historically beneficial for long-term price movement,” Santiment, an on-chain crypto- and blockchain analytics company, stated.