Bitcoin Reaches A New Record For Daily Transactions• May 1, 2023 11:53 am • Comments
The data has revealed that Bitcoin has just processed the largest number of daily transactions that it has ever had since its creation 14 years ago.
The previous record for the highest number of daily transactions was back in 2017 which was the height of a crypto bull run back then.
This new record exceeds that previous record by around 78,000 transactions and this was achieved despite the fact that crypto is not even in an extreme bull run at the moment.
Instead, the crypto markets is now in the middle of a mild bullish recovery and has not yet reached the previous all time high.
Still, a new record was set which indicates the increasing amount of adoption that Bitcoin has achieved globally in the past few years.
Bitcoin transactions reached a record high yesterday.
One of the main drivers was a protocol called Ordinals.
According to Dune Analytics,
Did you know there is a wrapped version of #BTC on Lumenswap (LBTC)? That means you can trade $XLM/BTC for no fees.#Lumenswap pic.twitter.com/nSrbo7UHql
— Mr.John.XLM (@thebu11runner) May 1, 2023
Over 307,000 of those transactions were Ordinals, the most on a single day ever and a 16% jump on the previous record set on Saturday, per a Dune dashboard.
That means Ordinals contributed around 54% of Bitcoin’s daily transactions at its all-time record.
Debuted in January, Ordinals allow data such as audio, art or even video games, to be attached (or “inscribed”) to individual satoshis, BTC’s smallest unit.
The result is a unique digital asset in the same vein as an Ethereum-based NFT, for example. Although, the relevant data exists entirely on the Bitcoin blockchain, rather than hosted externally, as is often the case.
More than 2.39 million Ordinals have been inscribed to date, per Glassnode, which said it has seen a “marked character shift” in Bitcoin mempools this year (Bitcoin mempools store unconfirmed bitcoin transactions).
There could be many factors for this increase of daily transactions on the blockchain as it is likely that it is not just one factor.
These factors include inflation concerns, fears of a prolonged banking crisis, as well as the fact that institutions now see it as an additional asset class to diversify and store capital.
The fact that we are seeing increasing decorrelation in the crypto markets from the traditional equity markets is proof of this new macro trend.
As of right now, most Bitcoin transactions that are performed today are purely monetary meaning they serve no utility besides the transfer of value.
Most of these likely come from crypto exchanges as BTC is seen more as a storage of wealth although it can be beneficial for moving large amounts of wealth in a single transfer.
Bitcoin transactions reach record high as Inscriptions surge https://t.co/QxqZqKGuFS
— The Block (@TheBlock__) April 30, 2023
The daily number of inscriptions made through Ordinals on Saturday totaled around 223,000, according to a widely-used Dune dashboard.
It marked the first time over 200,000 inscriptions were made in a single day and suggests the protocol is as popular as ever as it enters its fifth month since launch.
In April alone, the daily record for inscriptions made was shattered four other times. That included roughly 72,000 inscriptions on April 2 and 193,000 inscriptions on April 23, according to the Dune dashboard.
At the same time, the number of Bitcoin transactions neared levels not seen in several years, according to blockchain analytics firm IntoTheBlock. On Sunday, the firm said that the weekly average of daily Bitcoin transactions was around 396,000, its highest level since December 2017.
Daily transactions on the #Bitcoin blockchain have reached a new all-time high.
A record high 408,000 transactions were recorded on #bitcoin network. The previous record was just over 406,000. pic.twitter.com/xJK02WryBE
— Financial Index (@financial_index) April 30, 2023
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