However, it's good data regarding how much of the currency being held is put to use and how much is just hold-and-pray/FOMO.
As a supporter of bitcoin, I recognize that there's so little backing its value. Once some piece of devastating news would be released, it could send bitcoin tumbling all the way down to zero. There would not necessarily be any residual value to the currency if the news were bad enough. The only thing I could imagine that would obliterate all the value might be "algo for PoW is vulnerable to trivial double-spend, no software workaround available". The next most significant thing would be "global consensus among UN member states to outlaw cryptocurrency transactions, transactions to carry criminal penalties including imprisonment." But then it would just slip to merely black market use, which would likely preserve some residual value.
Bitcoin's power/lure is: invulnerability+deflationary+novelty+utility+ubiquity.
Invulnerability: its value will fluctuate as demand cycles, but the network will continue to churn out new transactions regardless.
Deflationary: yes, as everyone says this is a bad quality for a currency, but it helps explain why people keep investing.
Novelty: there's some things that you can do with bitcoin that you can't/couldn't ever do before.
Utility: it's a truly useful technology and there's innovation going on to find new ways to leverage it.
Ubiquity: why bitcoin and not other cryptocoins? Its marketing/brand/ubiquity is its strength. Admittedly it is not irresistibly strong. Support for some other coin could easily overtake it (and that's why there's some investors hedging on other coins).