PANews reported on December 30 that according to estimates by CryptoQuant CEO Ki Young Ju, combining on-chain and off-chain data, the total stored capital of the Bitcoin network has increased by 85% this year to $1.03 trillion. The estimation methods include:
1. Off-chain transactions : The capital flowing into the market through the exchange is calculated by multiplying the exchange's reserves by VWAP (weighted average price).
2. On-chain transactions : Using Realized Cap, track capital inflows from over-the-counter (OTC) transactions and on-chain activities of exchanges.
The above data are combined to form the "Storage of Value Index" (SoV Index), which reflects the capital storage level of Bitcoin in the network.
