Don’t let the relatively calm cryptocurrency markets fool anybody – the cryptocurrency sector is heating up. Specificially, on December 4th a massive amount of Bitcoin were moved on the blockchain during a single hour. Moreover, this massive transaction amount came with a notably tiny fee – yet again demonstrating the cost-effectiveness of large cryptocurrency transactions.
$9 billion worth of Bitcoin in one hour
This was first brought to light in a tweet by Rafael Schultze-Kraft, the co-founder of Glassnode, on December 4th. In his tweet, Schultze-Kraft said that a massive $8.9 billion worth of Bitcoin had been moved on the blockchain during one hour.
Furthermore, Schultze-Kraft also said that this hourly transaction value represents a first for the Bitcoin network as a whole. The following quote and chart clearly show that Bitcoin’s hourly on-chain volume has been increasing steadily over the past few years.
“It’s the highest hourly USD transaction volume in Bitcoin’s history.”
This is perhaps one of the best gauges for Bitcoin’s increasing adoption. Rather than to look merely at the trading price of Bitcoin, the on-chain volume actually shows how much “value” utilizes the Bitcoin network for transfers.
Is Bittrex behind the massive transactions?
Glassnode, which is an on-chain market intelligence firm, then went to work on finding the reason for this spike. Although nothing is yet entirely certain, Glassnode recently published a claim on Twitter with what the company deems the likeliest solution.
According to their tweet, Glassnode believes that the spike in volume was due to the cryptocurrency exchange Bittrex. Moreover, Bittrex is supposedly moving a large amount of Bitcoin multiple times ahead of scheduled maintenance.
If Glassnode’s claims are correct, the Bittrex performed 21 separate on-chain transactions within just one hour. Each of these transactions sent approximately 56,000 Bitcoin – worth roughly $416 million – for a fee of just $0.60.
For those who want to go into the weeds of this data, Glassnode’s tweet also includes a link to it. It is not entirely clear as to why Bittrex went on to move these funds. However, they have told cryptocurrency news outlets that no hack has taken place.
Additionally, some speculate that the reason may be that funds in the exchange’s cold wallets were moved ahead of the maintenance. Nevertheless, this new record superbly demonstrates the capability of the Bitcoin network to move tremendous sums of money in a short amount of time.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.