Bitcoin Dominance Continues to Grow – But Almost None of It Is On-Chain

TL;DR: Bitcoin’s market dominance is rising, fuelled by institutional inflows and its role as a store of value. Yet, most BTC trades remain off-chain on centralised exchanges, limiting its decentralised potential. Chainflip, Maya Protocol, and Thorchain are pioneering on-chain BTC swaps, offering truly decentralised trading alternatives. Together, we’re building infrastructure for a fully decentralised Bitcoin ecosystem, enabling BTC to thrive on-chain. The on-chain era of Bitcoin has just begun.

Bitcoin’s Rising Dominance as a Store of Value

Bitcoin’s dominance in the crypto market continues to surge, now accounting for over 60% of the total market cap, as shown in the chart below. This increase is partly fueled by growing institutional inflows, which reflect a rising confidence in Bitcoin as a store of value and as a global currency hedge. With the recent Bitcoin ETF launch, institutional interest has only intensified. However, while ETFs make Bitcoin more accessible to traditional investors, they don’t contribute to on-chain BTC trading, keeping Bitcoin within custodial settings.

Recently, BTC recorded an impressive $114 billion in 24-hour trading volume, emphasising its appeal as both a trading asset and a store of wealth. The volume chart below further highlights this strong trading momentum, showcasing Bitcoin’s high liquidity and appeal in the market. Yet, the majority of this volume is off-chain, mainly on centralised exchanges, limiting Bitcoin’s decentralised potential.

The Off-Chain Bottleneck: Why Bitcoin Trading Remains Centralised

Despite Bitcoin’s decentralised origins, most of its trading volume is concentrated on centralised exchanges, where users transact off-chain in custodial environments. This centralised trading model underscores a critical gap in the market: there is limited infrastructure for on-chain, native BTC swaps, which deprives traders and liquidity providers of decentralised pathways for Bitcoin trading.

As Bitcoin’s market dominance grows—bolstered by institutional inflows, its reputation as a hedge, and the recent ETF launch—much of this activity still takes place off-chain. This trend limits BTC’s decentralised potential, confining it to custodial environments instead of enabling it to fulfil its role as a truly trustless, on-chain asset.

Chainflip, Maya, and Thorchain: Pioneers of On-Chain BTC Liquidity

A New Era for Decentralised BTC Swaps

This is where Chainflip, Maya, and Thorchain come in. Recognising the need for authentic on-chain Bitcoin liquidity, our protocols are designed to bring Bitcoin back to its decentralised roots, enabling users to trade BTC on-chain without giving up custody or relying on intermediaries.

Rising Volumes Reflect Growing Demand

Together, each protocol is pioneering seamless, decentralised pathways for on-chain BTC swaps. Our collective volume growth highlights the rising demand for decentralised Bitcoin. The chart below showcases Chainflip’s weekly volume data, indicating a strong uptick in on-chain BTC trading as more users adopt decentralised swap options.

With nearly $700 million in total volume processed so far, Chainflip is proud to have handled over $270 million in the last two months alone. Though Chainflip is relatively new compared to Maya and Thorchain, our data shows that users are ready to take Bitcoin trading on-chain.

Milestones for Maya and Thorchain

In October, Maya achieved a significant milestone, processing its first-ever $200 million in monthly volume. Meanwhile, Thorchain consistently handles over $100 million in daily volume, much of which is driven by Bitcoin. Together, we’re building a future where BTC can be as decentralised in trading as it is in design, addressing the market’s demand for trustless, on-chain pathways.

Bringing Bitcoin Back On-Chain: Our Shared Vision for Decentralised BTC Trading

The Growing Need for On-Chain, Native BTC Trading

Each of the three protocols swap data clearly shows a growing demand for on-chain, native BTC trading. Chainflip’s volumes, along with those of Maya and Thorchain, reveal that users are actively looking for decentralised alternatives to centralised exchanges. This increase in on-chain BTC swap volumes signals that the crypto community values decentralisation—and that it’s ready to embrace platforms that offer it.

Building the Infrastructure for a Decentralised BTC Future

Bitcoin’s role as a decentralised asset doesn’t need to be confined to custodial exchanges or ETFs. At Chainflip, Maya, and Thorchain, we’re developing the infrastructure necessary to support Bitcoin’s decentralised future, providing the trustless routes BTC needs to thrive on-chain. As Bitcoin’s dominance grows, so does the need for secure, decentralised trading avenues that prioritise both user control and security.

Together, we’re pioneering a future where Bitcoin’s market dominance is matched by its on-chain utility, unlocking its full decentralised potential for a new generation of users, traders, and liquidity providers. The on-chain era of Bitcoin is here, and we’re only at the beginning.

If you’ve been searching for a truly decentralised way to trade Bitcoin on-chain, now is the time to take full advantage of the solutions available. With Chainflip, you can experience secure, trustless BTC swaps without sacrificing control. Start swapping now and join the movement to bring Bitcoin back to its decentralised roots.