Bitcoin Transaction Volume on Exchanges Hits $1.14B amid Market Turbulence
In addition to Bitcoin transactions reaching an all-time high of $1.14 billion, separate data from blockchain analytics firm Dune shows that activity on the network surged.
Bitcoin (BTC) transactions on centralized exchanges have reached a new all-time high, despite the ongoing market turbulence that pushed the crypto asset back into the $50,000 range on Monday.
According to data from Blockchain.com, US-based crypto exchanges processed a total of $1.14 billion worth of Bitcoin transactions as of August 6, which marks the end of the fourth Bitcoin halving cycle. During the event on April 20, miners’ rewards were reduced to 3.125 BTC.
Bitcoin Transaction Surge
Blockchain.com explained that the ongoing market downturn contributed significantly to the rise in Bitcoin transactions. During this period of volatility, some traders opted to sell their holdings, while others saw a good buying opportunity to increase their positions.
As a result, major US crypto exchanges recorded massive trading volumes in the fourth Bitcoin halving cycle compared to previous cycles.
The U.S. dollar equivalent of these transactions ($1.14 billion) was last seen in March 2024, before the Bitcoin halving event. At that time, Bitcoin was trading around $73,000 after two years of decline.
This market resurgence attracted many back into the crypto industry, with investors increasing their holdings out of fear of missing out (FOMO). This activity skyrocketed Bitcoin transactions on both centralized and decentralized exchanges.
Activity on the Bitcoin network also reached a new all-time high, as users interacted with other networks built on the chain.
However, things changed after the successful completion of the fourth Bitcoin halving in April. Daily Bitcoin transactions on major exchanges dropped to merely $30 million and have continued at this level as of August 6.
Although the value of Bitcoin transactions could be higher, Blockchain.com only collects data from prominent exchanges like Coinbase and Binance.
Surge in Bitcoin Network Activity
In addition to Bitcoin transactions reaching an all-time high of $1.14 billion, separate data from blockchain analytics firm Dune shows that activity on the network surged.
According to Dune, Bitcoin accounted for 90% of all crypto transactions processed on the network on August 5, leaving the remaining 10% to other protocols such as Ordinals, BRC-20, and Runes. These other networks used less than 9% of the Bitcoin network bandwidth.
These transactions came from both crypto traders and hackers who used their proceeds from previous hacks to buy additional cryptocurrencies such as Ethereum (ETH).
Coinspeaker reported on Monday that the Nomad Bridge exploiter used 45 million Dai (DAI) stablecoins to buy 16,892 Ether.
The purchase was detected by blockchain security firm CertiK, which shared the news on the popular social media platform X, revealing that the address associated with the hack has resurfaced after two years of inactivity.
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