Bitcoin UTXO Records Show New All Time High: Report

Bitcoin UTXO (unspent transaction outputs) recorded an all-time high growth and there are only a few potential explanations. In our Bitcoin news now we try and find out how this happened.

Each bitcoin transaction has the potential to create UTXO which is later redistributed to a change address. Jameson Lopp showed that the UTXO transactions are now happening more often and there’s a clear growth trend in 2019. What Bitcoin UTXO levels show is a technicality in the way miners report them. Some other alternatives include the usage of mixers since mixing the coins can split the coins into multiple small transactions and then consolidate them.

The most recent explanation is that small amounts of Bitcoin are now used often while it becomes more valuable. The small amount of the coins that get spent, move through the ecosystem and these levels are also growing with the need for small change also increasing. The current prices and levels of BTC usage are very close to that of 2018 making the UTXO growth an even weirder anomaly. Additionally, most of the large-scale wallets hold onto the coins and the current spike in transactions comes from other coins that are dedicated to trading and active using.

Bitcoin transactions have also grown continuously over the years along with the generated wallets. In 2019, bitcoin saw an increase in both small-scale wallets and whale stash of 1,000 BTC and above. The coin movements have also responded to market conditions almost immediately and the transfers also grew as Bitcoin prices went through short-term rallies. Lopp tracked some of the other indicators showing how Bitcoin evolved in 2019 and one of the factors that saw mining growing was the highly competitive industrial activity. When it comes to the security of the network, the bitcoin protocol reached peak attack resistance with the indicator worsening over the past month.

Bitcoin still remains an asset that is still discovering its price range as well as the potential use cases. The Bitcoin network has seen a lot of anomalies that range from deliberate spam to secondary projects that managed to create millions of small transactions for verification. The Bitcoin space has a lot of new players as well ranging from startups to crypto-based finance giants.