Bitcoin Network Activity Drops to 12-Month Low as Transactions Fall 55%

Bitcoin network activity has reached a 12-month low, with the 7-day moving average of transactions falling to 330,000, marking a 55% drop from the peak of 730,000 transactions recorded earlier.

Decline in Protocol Activity and Network Fees

Bitcoin transaction fees have stabilized at approximately $500,000 monthly, down from previous highs seen before the end of 2024. This drop coincides with a significant decline in activity from Bitcoin-based protocols like Runes and Ordinals, which once drove speculative interest:

• Runes protocol fees have plummeted to less than $20,000 in the last 30 days, compared to $60 million on launch day.
• Ordinals transactions now represent only 1% of total Bitcoin activity.

Shift in Trading Activity to Solana and Base

Speculative trading has migrated to other blockchains, with traders shifting focus to:

• Solana, which has become a hub for memecoin trading.
• Base, Coinbase’s Ethereum Layer 2, dominating AI agent token markets.

Impact on Bitcoin's Long-Term Utility

The current decline raises questions about Bitcoin’s network utilization and fee sustainability, especially with block rewards diminishing over time. The network’s return to primarily monetary transfer use cases highlights a need for new Bitcoin-based protocols to drive future ecosystem growth.