The Bitcoin network is showing minimal activity compared to previous periods. Coin holders are shifting to long-term storage, affecting transaction count and block occupancy.
Current Bitcoin Activity
Despite the rapid price drop to $92,000, actual coin movement in the Bitcoin network hasn't changed significantly. Recently, mostly empty blocks containing only block reward transactions have been formed. Bitcoin currently carries 1-2 transactions in most blocks, recalling the low transaction levels seen in 2022 and 2023.
Impact on Transaction Fees and Value
Daily transactions remain over 380K, close to the lower range in the past 12 months. The average transaction fee has dropped to $1.18. The Bitcoin network is mostly used for simple coin transfers, with little activity relating to more complex operations.
Future of Bitcoin Mining and Network
The low transaction activity raises questions about the future of mining, especially with each upcoming block reward halving. Despite increased competition among miners, the current slow transaction activity could negatively impact the network's sustainability if transaction fees do not increase.
The Bitcoin network continues to operate with minimal transaction activity as coin holders prefer long-term storage. This presents challenges to mining sustainability and requires adaptation to ensure the network remains viable long-term.
