Bitcoin UTXO Growth Hits New All-Time High, But What Does it Mean?

The Bitcoin (BTC) record is showing one indicator of extreme growth this year – the count of Unspent Transaction Outputs, or UTXO. This growth points to several potential explanations.

UTXO Growth May Signal Coin Mixing Activity
Each bitcoin transaction has the potential to generate UTXO, or “change”, which is then redistributed to a change address. Jameson Lopp showed that UTXO transactions are now happening more often, with a clear growth trend in 2019.

Bitcoin's UTXO set rose from 49.6M to an all-time high of 64.5M, adding a net new UTXO every 2 seconds.
— Jameson Lopp (@lopp) December 30, 2019

What UTXO levels indicate may be a technicality in the way miners report them. Alternative explanations included the usage of mixers. Mixing coins can split the coins into multiple…

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