Sixfold Discrepancies in Bitcoin On-Chain Transfer Data Exposed
The Bank for International Settlements (BIS) has published a study highlighting discrepancies in the way on-chain transfer data is measured and reported. According to the research, estimates of Bitcoin transfer values can differ by as much as six times depending on how transaction outputs are interpreted.
The BIS team found that conventional market-cap style measures may overstate realized value, with estimates sometimes being up to four times higher than actual capitalization. This is because different measurement methods can treat change outputs, such as funds returned to the sender, as additional transfers or not.
Another issue highlighted by the study is the complexity of Ethereum's smart-contract environment, which makes it difficult to accurately categorize and classify on-chain activity. The researchers also noted that stablecoin activity varies by chain and purpose, making it challenging to aggregate data across networks without losing valuable insights.