Bitcoin (BTC) Network Sees Sudden Burst of Activity
Over a few hours, the Bitcoin network recorded sudden, overwhelming activity, which increased pending transactions to more than 39,000.
Bitcoin (BTC) experienced a sudden unexplained spike in activity in the past day, with pending transactions rising from their usual low levels to as many as 39,000. In the past, the number has exceeded 300,000, so this surge was relatively modest. Yet, it happened during a generally quiet time, so the unexpected flood of transactions sparked multiple theories.
One of the explanations is that this is a bullish sign preceding a rally. The pickup suddenly filled the mempool on Monday, with activity remaining high in the following days. Other theories include attempts at mixing funds, which requires a large number of transactions. In the past, similar activity on the Bitcoin network was viewed as a form of spam. Given that transaction fees are extremely low, attacking with small transactions is now cheaper.
While the level of transactions is far from previous highs, the activity also triggered speculation that the Bitcoin network is under attack, getting spammed to reduce transfer speeds. However, if there was an attack, it was short-lived.
The spike in activity also coincided with a call to alter the Bitcoin network in a soft fork and limit the size of the blocks to 300 kB. However, this change would create the risk of network congestion by providing less space within each block, so transactions would fill it faster. Currently, fees remain low, but congestions are still possible.
Transactions on the Bitcoin network have been growing in the past three months, registering an occasional spike. The BTC hashrate persists above 41 EH/s, and the network has 10,414 nodes, with all parameters remaining robust. The Bitcoin price hovered around $3,652 on Wednesday, relatively stagnant in its current tight range. Volumes have expanded to $6.4 billion in 24 hours, up from the usual range around $5 billion.