Bitcoin UTXO Transactions Per Month Increased 100 Times in 8 Years, Clear Indication of Adoption?
Bitcoin UTXO transactions per month has increased 100 times more since 2011 reports Bitcoinist, who referenced the statistics from Twitter users, Plan B and Token Insight.
So, what are UTXOs exactly? UTXOs are also known as unspent transaction outputs.
To make things clear, here’s how Monetha explains it:
“A Bitcoin transaction has both an input and an output. The input is the address where the bitcoin is sent from; the output is the address where it is sent to.”
Evidently, when the output is spent, there’s no going back. That said, an UTXO can either be used or spent as an input in another transaction. So, if one’s wallet does not have any Bitcoins then said individual does not have any UTXO.
The chart provided by Plan B looks at the BTC per month as a function of UTXO per month, ultimately giving us a picture of what the velocity of the Bitcoin Network looks like. It seems like there is a positive correlation between UTXO and BTC. That is, as the UTXO per month increases so does the BTC per month.
As per the news outlet, trading activity is a contributing factor for Bitcoin transfers. It was further highlighted that the last year or two was striking given the presence of new crypto exchanges and BTC payment options on the rise.
On Thursday, November 7, 2019, the Bitcoin Network supposedly had 314,000 transactions excluding UTXO, with a price drop to $9,300. When addressing its US value, it comes out to $1.4 billion notes the news outlet, adding that while it has dropped from its peak, it remains the fifth most-crowded network. In addition, the giant is the deemed the only one to having ‘highly active transfers.’
Most of the trading action is found in crypto exchanges, with roughly 7 percent of BTC’s supply! That said, while most BTC is said to be inactive (active recipients down by 5%), the fact that the digital asset is being held is reasoned as being indicative of the trust people have garnered over the long run.