Bitcoin On-Chain Transaction Activity Hits 18-Month Low

Bitcoin's on-chain transaction activity has declined significantly, averaging 316,000 weekly transactions as interest in protocols like Runes and Ordinals wanes.

BTC
ETH

Summary

Bitcoin's on-chain transaction activity has dropped to an 18-month low, with a 7-day average of 316,000 transactions, down from 700,000 in mid-2024. Transaction fees remain under $1.50, indicating reduced block space competition. The decline is attributed to diminishing interest in Bitcoin-native protocols such as Runes and Ordinals, leading traders to explore other blockchain ecosystems.

Terms & Concepts
  • On-chain transactions: Transactions that are recorded directly on the blockchain, reflecting the actual transfer of cryptocurrency.
  • Transaction fees: Fees paid to miners for processing transactions on the blockchain, which can fluctuate based on network demand.
  • Block space: The capacity within a blockchain to accommodate transactions, often limited by the size of each block.