The cryptocurrency's daily volume could exceed that of all U.S. equities in less than four years and all U.S. bonds in less than five years, the analysis shows.
Bitcoin's Volume Growth Could Match Stocks and Bonds
Cryptocurrency data provider Coin Metrics published its new State of the Network report (Issue 53) Tuesday that focuses on analyzing bitcoin's trading volume. Coin Metrics estimates bitcoin's free-float market capitalization to be $136 billion — a size similar to the largest publicly traded companies in the U.S. However, the report notes that while it is easy to estimate bitcoin's market capitalization, a volume assessment is "more complicated and different calculation methodologies can yield significantly different results."
The report proceeds to suggest that any institutional investors wanting to enter the crypto space need to make some decisions that "can have a material impact on [the] evaluation of [bitcoin's] trading volume and liquidity."