The 7 – day moving average of Bitcoin network transactions has dropped to around 317,000, the lowest level since October 2023, despite the fact that the price of BTC is approaching an all – time high. On June 1st, only 256,000 transactions were packaged, and some miners have started to accept transactions that are below the default forwarding standard of 1 sat/vB.
The decline in Bitcoin network activity is also reflected in the significant drop in fees. In the past month, transaction fees have stabilized at around $500,000, much lower than the higher levels seen during peak network activity. The decline in activities such as Runes and Ordinals based on the Bitcoin protocol is particularly evident. In the past 30 days, the fee income of Runes has dropped to less than $20,000, while it had generated $60 million in revenue when it was launched.
The current situation of low transaction activity may be affected by multiple factors. The change in miners’ strategies is one of the possible reasons. With the price of Bitcoin rising, miners are more inclined to hold Bitcoin to wait for higher profits, rather than cashing out in the short term. In addition, the decrease in the reserve of Bitcoin on exchanges may also indicate that the market is in a “high – speed accumulation period”, and the selling pressure is dispersed by over – the – counter transactions or institutional holdings. Moreover, the weekend trading volume of Bitcoin has dropped to a historical low of 16% this year. The newly – approved spot Bitcoin ETF seems to have changed the trading cycle of Bitcoin, making it more in line with the schedule of traditional stock exchanges and reducing the price volatility of Bitcoin.
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