Work

Bitcoin trade volume in decentralized markets: International evidence

Year: 2025

Type: article

Abstract: We analyze the determinants of Bitcoin (BTC) trade volume in decentralized exchanges (DEXs) and test the claim that BTC trades on these platforms are censorship-resistant. The study finds that overall economic freedom, particularly monetary freedom, correlates indirectly with BTC trade volumes, while capital restrictions on residents' transactions abroad correlate in two different directions. Purchase transactions inversely correlate with BTC volume in DEXs, while sales transactions correlate directly. These results suggest that BTC can be used to hedge against poor institutional frameworks, particularly against poor monetary governance, and as a vehicle for institutional hedging against repressive capital controls and institutional failures. The study's originality lies in its use of on-chain panel data on the volume of BTC transactions, which are country-specific and allow for comparing the impact of country-specific socio-institutional variables on BTC volumes. • Decentralized exchanges leverage blockchain for innovative financial services. • BTC provides an institutional hedging option against poor governance frameworks. • On-chain data reveal BTC country dynamics and institutional hedging potential.

Source: Technological Forecasting and Social Change

DOI: 10.1016/j.techfore.2025.124054

Authors: Gabriel A. Giménez Roche, Antoine Noël, Loïc Sauce

Institution: NEOMA Business School

Language: English

Topic: Blockchain Technology Applications and Security

Subfield: Information Systems

Field: Computer Science

Domain: Physical Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,490