So, consolidating makes sense for those with HGH volume transactions to reduce outstanding unspent UTXO, no? If not, you consolidate all to one account and can be a privacy issue?

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There are many reasons as to why you may need to consolidate UTXO's, and there are many different sized UTXO's you prefer to hodl.

There are also layer 2 solutions, Lightning, Liquid, eCash that can be used between on-chain transactions.