Bitcoin’s large-sized transactions crumble

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Bitcoin
Bitcoin’s large-sized transactions crumble

Bitcoin’s hefty $10 million plus-sized transactions have experienced a dramatic drawdown since the collapse of FTX. Earlier, such transactions held around 42.8% of the total volumes.

FTX collapse leads to BTC transaction volume kickbacks

Amid the crypto ecosystem’s drawdowns, the intelligence and data platform Glassnode revealed that the befallen virtual currency exchange, FTX led to the dramatic fall of the dominant BTC transactions worth over $10 million. It added that such transactions accounted for more than 42.8 % of the total volumes but currently represent 19% of all on-chain volume.

Before 2022, FTX was a renowned crypto exchange globally owned by Sam Bankman-Fried (SBF), who also inaugurated the Alameda firm. Its drawdown commenced on Nov. 2 after reports suggested that Alameda had deeply invested in FTX, keeping the two companies and the owner at the center of investigations and causing a further crypto meltdown. 

SBF was later indicated to be utilizing users’ deposits in the exchange as collateral, causing the company to file for chapter 11 bankruptcy. Additionally, the organization experienced a massive hack that severely impacted it.

BTC and ETH continue with sideways market movement, but there is hope

BTC’s daily transactions are pegged at 228488.0 in the last 24 hrs., down from yesterday’s 246679.0 and up from 223920.0 a year ago. It is showcased as a -7.37% change from yesterday and 2.04 %, 2022, and an average growth rate of 1.05%. 

Bitcoin's large-sized transactions crumble - 1
Source: Ycharts.com

On Jan. 3, Ethereum, also a leading virtual asset, led the way with a 338% rise in transaction volume, stripping the grandfather of cryptos (bitcoin) of the title. However, BTC remains the most prominent in online search potential.

According to Ycharts and Nasdaq’s data on Jan. 2, there were 408.5 million ETH transactions in 2022 compared to bitcoin, which had 93.1 million. The charts depict 1.1 million daily ETH transactions and 255,000 for BTC.

Bitcoin's large-sized transactions crumble - 2
ETH vs BTC transaction volumes. Source:Ycharts/Nasdaq from Reddit

Though these figures indicate a side was market, there is still hope for the crypto space as whales are increasing their activities significantly. They have been seen accumulating more coins and selling less.

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Samuel Mbaki Wanjiku

Samuel is an adventurous person who likes to explore topics in-depth and learn new things each day. His passion lies in gaining knowledge to help transform the world through his writing skills. He also believes in blockchain technology and its potential to usher in a cashless society. Currently, he is pursuing a Computer Science Bachelor’s degree driven by his fascination with emerging technologies. He has writing experience of about three years in different fields and two in blockchain technology.