Bitcoin Chain Daily Transactions Reach 663,000, Record High

Key Points:

• The number of daily transactions on the Bitcoin chain reached 663,000 yesterday, a record high.
• Bitcoin Daily Transactions Hit New Highs Thanks to the Growing Inscription of Ordinals.
• Binance has frozen Bitcoin withdrawals twice in recent days due to what the exchange calls a “congestion” on the cryptocurrency’s blockchain.

With the arrival of Ordinals, daily transactions on Bitcoin chain hit a record high of 663,000 yesterday.

According to data from the OKLink multi-chain browser, with the arrival of Ordinals, the number of transactions on the Bitcoin chain has recently experienced a staggering increase, reaching a record 605,000 since May 1st. In terms of transactions, the number of transactions in a single day on-chain hit a new high yesterday, reaching 663,000. Compared to the daily average of 250,000 in 2022, the current number of daily transactions has more than doubled.

Ordinals Inscriptions are similar to NFTs that can be inscribed into the smallest denomination of a Bitcoin, Satoshi. Ordinals have drawn more attention to Bitcoin, which may help its reputation and awareness.

Meanwhile, some Bitcoin experts believe that Ordinals are a waste of block space as they make transactions more expensive for ordinary users. According to them, the BTC network should only be used for payments.

The blockchain is where all transactions for a given cryptocurrency are recorded. The congestion on Bitcoin’s blockchain is reportedly due to the growing volume of transactions in the so-called “meme coin.” These cryptocurrencies piggyback on the original blockchain and charge high transaction fees.

Bitcoin miners, who verify transactions, charge higher transaction fees than most exchanges when withdrawing. This results in slow processing times for exchanges like Binance, thus resulting in the “congestion” the exchange refers to.

Reportedly, Binance has frozen Bitcoin withdrawals to give miners more time to catch up on the backlog of transactions. For the first time, Binance halted withdrawals on Sunday afternoon for about 90 minutes, and the exchange then halted withdrawals again early Monday morning for another two hours.

Currently, this congestion also has the effect of causing the price of Bitcoin (BTC) to drop 2.3% in the past 24 hours and is currently trading at $27,624.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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