diff --git a/lbry/wallet/server/leveldb.py b/lbry/wallet/server/leveldb.py
index 1db38f26f..f7bb7faba 100644
--- a/lbry/wallet/server/leveldb.py
+++ b/lbry/wallet/server/leveldb.py
@@ -82,8 +82,7 @@ class LevelDB:
         self.merkle = Merkle()
         self.header_mc = MerkleCache(self.merkle, self.fs_block_hashes)
 
-        path = partial(os.path.join, self.env.db_dir)
-        self.hashes_file = util.LogicalFile(path('hashes'), 4, 16000000)
+        self.hashes_db = None
         self.headers_db = None
         self.tx_count_db = None
 
@@ -130,6 +129,12 @@ class LevelDB:
             self.logger.info('created new tx count db')
         self.logger.info(f'opened tx count DB (for sync: {for_sync})')
 
+        assert self.hashes_db is None
+        self.hashes_db = self.db_class('hashes', for_sync)
+        if self.hashes_db.is_new:
+            self.logger.info('created new tx hashes db')
+        self.logger.info(f'opened tx hashes DB (for sync: {for_sync})')
+
         assert self.utxo_db is None
         # First UTXO DB
         self.utxo_db = self.db_class('utxo', for_sync)
@@ -152,6 +157,7 @@ class LevelDB:
         self.history.close_db()
         self.headers_db.close()
         self.tx_count_db.close()
+        self.hashes_db.close()
         self.executor.shutdown(wait=True)
         self.executor = None
 
@@ -184,6 +190,10 @@ class LevelDB:
         if self.tx_count_db:
             self.tx_count_db.close()
             self.tx_count_db = None
+        if self.hashes_db:
+            self.hashes_db.close()
+            self.hashes_db = None
+
         await self._open_dbs(False, False)
         self.logger.info("opened for serving")
 
@@ -270,13 +280,10 @@ class LevelDB:
         assert flush_data.tx_count == (self.tx_counts[-1] if self.tx_counts
                                        else 0)
         assert len(self.tx_counts) == flush_data.height + 1
-        hashes = b''.join(flush_data.block_tx_hashes)
-        flush_data.block_tx_hashes.clear()
-        assert len(hashes) % 32 == 0
-        assert len(hashes) // 32 == flush_data.tx_count - prior_tx_count
+        assert len(b''.join(flush_data.block_tx_hashes)) // 32 == flush_data.tx_count - prior_tx_count
 
         # Write the headers, tx counts, and tx hashes
-        start_time = time.time()
+        start_time = time.perf_counter()
         height_start = self.fs_height + 1
 
         for header in flush_data.headers:
@@ -284,16 +291,22 @@ class LevelDB:
             self.headers_db.put(HEADER_PREFIX + util.pack_be_uint64(height_start), header)
             self.tx_count_db.put(TX_COUNT_PREFIX + util.pack_be_uint64(height_start), util.pack_be_uint64(tx_count))
             height_start += 1
-        offset = prior_tx_count * 32
-        self.hashes_file.write(offset, hashes)
+
+        tx_num = prior_tx_count
+        for tx_hashes in flush_data.block_tx_hashes:
+            offset = 0
+            while offset < len(tx_hashes):
+                self.hashes_db.put(TX_HASH_PREFIX + util.pack_be_uint64(tx_num), tx_hashes[offset:offset+32])
+                tx_num += 1
+                offset += 32
+
+        flush_data.block_tx_hashes.clear()
 
         self.fs_height = flush_data.height
         self.fs_tx_count = flush_data.tx_count
-
         flush_data.headers.clear()
-        if self.utxo_db.for_sync:
-            elapsed = time.time() - start_time
-            self.logger.info(f'flushed filesystem data in {elapsed:.2f}s')
+        elapsed = time.perf_counter() - start_time
+        self.logger.info(f'flushed filesystem data in {elapsed:.2f}s')
 
     def flush_history(self):
         self.history.flush()
@@ -421,7 +434,7 @@ class LevelDB:
         if tx_height > self.db_height:
             tx_hash = None
         else:
-            tx_hash = self.hashes_file.read(tx_num * 32, 32)
+            tx_hash = self.hashes_db.get(TX_HASH_PREFIX + util.pack_be_uint64(tx_num))
         return tx_hash, tx_height
 
     async def fs_block_hashes(self, height, count):