Critical Data In Bitcoin At Its Highest Since The Terra (LUNA) Crash!

Bitcoin (BTC) The number of unconfirmed transactions in the mempool has reached the highest level in the last 10 months.

The number of Bitcoin transactions pending confirmation by the network has reached its highest point since the explosion of Terra, a sign of renewed interest in the BTC Blockchain.

Bitcoin (BTC) Network Queued Transactions Highest Since Terra Crash

In the afternoon of March 9, there were about 81,000 transactions briefly in Bitcoin’s “mempool”, a data structure that stores valid transactions that have not yet been added to the blockchain.

That figure was just 1,000 less than last year’s peak on May 13, when the algorithmic stablecoin UST dropped to zero, 66% more than the 48,000 transactions that stood unconfirmed in mid-November following FTX’s sudden collapse.

Such mempool spikes can occur when there is an increase in network usage, but a sudden drop in mining power can have the same effect.

Only a certain amount of transaction data can fit in each Bitcoin block (2,000 transactions on average). When there is transaction redundancy, users have to wait for their transactions to flow through the mempool.

Users can incentivize miners to execute their transactions first, with higher fees. So, when the mempool is truly full, miners can choose to only process transactions with more bitcoins added, or even set a minimum fee to hold those with lower fees.

In this case, the mempool is often filled with large amounts of unconfirmed, low-fee transactions. Thus, higher transaction fees are considered one of the main causes of mempool fluctuations.

*Not investment advice.