Key Points
- Bitcoin transactions on centralized exchanges have reached a record high of $1.14 billion despite market instability.
- This surge in transactions is attributed to the market downturn and the completion of the fourth Bitcoin halving cycle.
Bitcoin (BTC) transactions on centralized exchanges have hit a new peak, despite the market instability that pushed the cryptocurrency back into the $50,000 range.
Data from Blockchain.com shows that US-based crypto exchanges processed a total of $1.14 billion worth of Bitcoin transactions as of August 6. This date marks the end of the fourth Bitcoin halving cycle, during which miners’ rewards were reduced to 3.125 BTC.
Rise in Bitcoin Transactions
Blockchain.com suggests that the current market downturn significantly contributed to the increase in Bitcoin transactions. During this volatile period, some traders decided to sell their holdings, while others saw it as an opportunity to buy more.
As a result, major US crypto exchanges recorded huge trading volumes in the fourth Bitcoin halving cycle compared to previous ones. The USD equivalent of these transactions ($1.14 billion) was last seen in March 2024, prior to the Bitcoin halving event.
This market resurgence attracted many investors back into the crypto industry, leading to a surge in Bitcoin transactions on both centralized and decentralized exchanges. Activity on the Bitcoin network also reached a new all-time high, with users interacting with other networks built on the chain.
However, the situation changed after the successful completion of the fourth Bitcoin halving in April. Daily Bitcoin transactions on major exchanges dropped to a mere $30 million and have continued at this level as of August 6.
Despite the potential for higher Bitcoin transaction values, Blockchain.com only collects data from prominent exchanges like Coinbase and Binance.
Increased Bitcoin Network Activity
In addition to Bitcoin transactions hitting an all-time high of $1.14 billion, separate data from blockchain analytics firm Dune shows a surge in network activity.
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 originated from both crypto traders and hackers who used their proceeds from previous hacks to buy additional cryptocurrencies such as Ethereum (ETH).
On Monday, it was reported that the Nomad Bridge exploiter used 45 million Dai (DAI) stablecoins to purchase 16,892 Ether. This purchase was detected by blockchain security firm CertiK, which shared the news on a popular social media platform, revealing that the address associated with the hack has reappeared after two years of inactivity.