Bitcoin transactions on crypto exchanges surged in turbulent market conditions and set a new record in transaction volume during the fourth cycle of the Bitcoin halving process. On August 5, many crypto investors suffered significant losses after positions were liquidated due to falling prices of leading cryptocurrencies, including Bitcoin, Ethereum, and Solana.
What is Happening in the Crypto Market?
As a result of the turmoil, some crypto investors sold their Bitcoin assets to minimize losses, while others chose to buy heavily discounted Bitcoin in the $50,000 range. According to Blockchain.com data, as shown below, the total USD value of transaction volume on major Bitcoin exchanges exceeded $1.14 billion on August 6.
A similar transaction value was last recorded in March, long before the fourth Bitcoin halving process was completed on April 20. After the halving process, the daily exchange transaction volume on Bitcoin exchanges remained at an average of $30 million.
It is important to note that the data in question is collected from top crypto exchanges and some over-the-counter markets. Therefore, the actual total transaction volume is much higher than reported. Data from Dune Analytics shows that more than 90% of transactions passing through the Bitcoin network on August 5 were Bitcoin. Other significant Bitcoin protocols like Ordinals, BRC-20, and Runes collectively occupied less than 9% of the Bitcoin network bandwidth.
Details on the Subject
The sudden crash in the crypto market caused Bitcoin and Ethereum prices to drop by more than 10% and 20%, respectively. Crypto hackers saw this drop as an opportunity to buy heavily discounted Ethereum using funds stolen from previous transactions. The Nomad Bridge hacker used 39.75 million Dai tokens stolen in August 2022 to purchase 16,892 Ethereum.
In addition to the findings of blockchain analysis firm Lookonchain, blockchain research firm PeckShield noted that the Nomad hacker simultaneously sent 17.75 Ethereum to an intermediary Ethereum address. As of August 5, the hacker transferred approximately 2,400 Ethereum worth $7 million to Tornado Cash.
