UTXO Value Heatmap Overview

The UTXO Value Heatmap is a new visualization tool designed to display the distribution of Bitcoin's Unspent Transaction Outputs (UTXOs) within each block. This chart offers insight into how value is dispersed across individual transactions on the Bitcoin network. UTXOs represent the amount of Bitcoin left over after a transaction is executed—essentially, they're the "change" that can be spent in the future. This system forms the foundation of Bitcoin's accounting model.

How It Works

• UTXO Structure: Every Bitcoin transaction consumes one or more UTXOs as inputs and creates new UTXOs as outputs. These outputs then serve as spendable coins for future transactions. UTXOs are stored by every full node and are crucial for verifying balances.
• Block Aggregation: Transactions are grouped into blocks, with each block containing a set of transactions and the resulting UTXOs. By analyzing the value of each UTXO created in a block, we can understand how users are transacting and what denominations are most commonly used.

The UTXO Value Heatmap

• Heatmap: This chart visualizes UTXO value density across different blocks. The vertical axis represents UTXO value ranges (e.g., 0.0001 BTC, 0.001 BTC, etc.), while the horizontal axis spans recent blocks. Brighter areas indicate a higher concentration of UTXOs at a particular value, revealing behavioral patterns and popular transaction sizes.
• Yellow Line: The yellow line overlaid on the chart represents the average UTXO value per block. This metric highlights trends in how much value users typically transfer in each transaction, offering a dynamic view of Bitcoin's economic activity at the block level.

By analyzing raw UTXO data directly from the Bitcoin blockchain, this heatmap provides a unique, decentralized perspective on how value is distributed among Bitcoin users, free from exchange bias and centralized pricing.