Bitcoin Network Activity Slows, Mempools Clear as Transaction Count Hits 11-Month Low

The Bitcoin network is experiencing a significant slowdown, with the number of daily transactions dropping to an 11-month low. This decline in activity has led to a near-complete clearing of Bitcoin's mempools – the waiting areas for unconfirmed transactions – and has miners processing blocks that are not fully filled, a rare occurrence for the network.

From Peak Activity to a Quieter Network: What's Behind the Slowdown?

After peaking in October 2024, Bitcoin transaction counts have steadily decreased, falling over 43% from their all-time high. While there was a brief spike in activity leading up to the recent U.S. presidential inauguration, the overall trend has been downward. The seven-day moving average of daily transactions is now at its lowest point since February 2024.

This reduced activity has had a direct impact on the Bitcoin mempools. By Saturday, the backlog of unconfirmed transactions, which had reached around 250,000 in late December 2024, had nearly vanished. This resulted in several Bitcoin blocks being mined without reaching their full capacity, a situation rarely seen on the network. Transaction fees have also approached record lows.

Miners Feel the Squeeze: A Search for New Revenue Streams

The slowdown raises concerns for Bitcoin miners, who rely on transaction fees as a source of revenue. With the recent Bitcoin halving already reducing block rewards, the decline in transaction volume could further squeeze profitability. In response, some large mining firms are exploring diversifying their operations into providing computing power for AI and high-performance computing workloads.