• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
Bitcoin

Bitcoin Rips Above $29,000, But Why Is The Mean Transaction Size At A 3-Year Low?

Dalmas Ngetich by Dalmas Ngetich
4 weeks ago
in Bitcoin
Reading Time: 3 mins read

Bitcoin prices might be firmer when writing on May 4, rallying above $29,000 and breaking above local resistance levels in lower time frames. But the Mean Transaction Size, based on the 7-day moving average, is at a 3-year low, according to Glassnode, a blockchain analytics firm.

Bitcoin’s Mean Transaction Size Crashing

The Mean Transaction Size relays the average transaction size over a given period. It can be used as a lead to gauge the level of activity. Typically, the higher the demand for BTC, the better the prices.

Bitcoin Price On May 4| Source: BTCUSDT On Binance, TradingView
Bitcoin Price On May 4| Source: BTCUSDT On Binance, TradingView

Considering the decentralized nature of public networks, including Bitcoin, transactions are packed in blocks before being confirmed and added to the longest chain. 

Related Reading: Bitcoin Market in Disarray, But Optimism Prevails With Two Narratives

The size of each Bitcoin block is fixed at 1 MB; therefore, the number of transactions that can be packed in a block directly depends on the size of each transaction. On average, BTC transactions can be between 300 and 400 bytes. Coupled with the set transaction processing time of roughly 10 minutes, transaction sizes, and by extension, the block size cap, directly impacts the network’s throughput.

A notable observation is that the mean transaction size in Bitcoin has been rapidly falling over the past few weeks. There was a sharp expansion from late January 2023 when the mean transaction size rose from around 590 to 1,195 in mid-February.

It then see-sawed in the following weeks, falling from 1,192 in late March to 820 in early April. It crashed to 467.949 on May 2, the lowest in three years.

📉 #Bitcoin $BTC Mean Transaction Size (7d MA) just reached a 3-year low of 467.949

Previous 3-year low of 468.425 was observed on 02 May 2023

View metric:https://t.co/PJ0bkLTuVs pic.twitter.com/WNZE2VmaOM

— glassnode alerts (@glassnodealerts) May 4, 2023

Blame The Ordinals

The initial expansion in late January could be attributed to the launch of the Bitcoin Ordinals platform. The portal allows individuals to attach files, including texts, images, and videos, to Satoshis. Afterward, these files are stored in Bitcoin blocks after being confirmed by miners. 

Because each file is unique and exists as a transaction, every Ordinal stored in a Bitcoin block has been compared to non-fungible tokens (NFTs), though they are not technically NFTs. And Dune data shows that over 3.5 million inscriptions have been added to the Bitcoin network. 

However, while the number continues to rise, there is a marked shift in the types of files attached. In the early days of the Bitcoin Ordinals, there were more images, which were bigger than texts and other files, such as audio or applications. 

Related Reading: Bitcoin Price Regains Strength Post Fed Hike, $30K Could Be Next

Over the months, this has changed, and there are more text inscriptions. Texts are smaller in size than, for example, images or videos. 

As such, this might explain the rapid drop in the mean transaction size based on the 7-day moving average, especially over the last few weeks from April 2023.

Feature Image From Canva, Chart From TradingView
Tags: bitcoinBitcoin Ordinalsbitcoin priceMean Transaction Sizescalability
Tweet123Share196ShareSend
Dalmas Ngetich

Dalmas Ngetich

Dalmas is a crypto reporter covering NFTs, blockchain, DeFi, and blockchain news for NewsBTC. He’s part of a team of talented team working on bringing latest crypto development across the board. Dalmas is also the ex-founder of btc-pulse.com, a crypto news outlet. Dalmas has over 10 years of experience covering Forex, general finance, technology, and blockchain developments. His work and that of his partners has been featured in top news outlets including investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. He’s passionate about technology and politics. When he’s not keeping tabs on crypto events, you’ll find him out in nature, exploring and traveling with family and friends. You can follow Dalmas on Twitter @Dalmas_Ngetich or ping him on Telegram @Dalmas_Ngetich

Related Posts

Bitcoin Core

Bitcoin Core 25.0 Hits The Market: A Sneak Peek Into The Future

4 hours ago
Bitcoin (BTC)

JPMorgan Predicts Bitcoin (BTC) To Revisit $45,000, Here’s Why

3 days ago
Bitcoin

Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?

3 days ago
Bitcoin Bear

Bitcoin Bearish Signal: NUPL Finds Rejection At Long-Term Resistance

4 days ago
Bitcoin

Bitcoin Hangs At $26,200: Why This Is A Crucial Support Level

4 days ago
Prominent Crypto Trader Peter Bradit Drops Shocking Bitcoin Price Prediction

Prominent Crypto Trader Drops Shocking Bitcoin Price Prediction

6 days ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • TMS Network (TMSN) Exceeds Popular Meme Coin Rivals Shiba...

    8 mins ago
  • Traders Union published the list of Best Forex Brokers in...

    3 hours ago
  • Coinbase battles with SEC users are moving to Tradecurve

    4 hours ago
  • Cardano to hit 1$, Floki inu braces for price breakout and...

    5 hours ago
  • Ben Token Breaks $100 Million Market Cap, Could it Make it...

    5 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.