Analysis of Bitcoin network activity reveals interesting trends: decreasing number of transactions amid rising high-value transfers.
Understanding the Dip in Bitcoin Network Activity
According to data analyzed by Glassnode and reported by The Block, the raw number of daily transactions on the Bitcoin network has actually fallen to levels not seen since October 2023. This is not due to a lack of interest in Bitcoin, but rather a significant reduction in specific types of network usage, such as Inscriptions and Runes, which previously surged activity and fee revenue.
Rise in High-Value Bitcoin Transactions
Despite the lower overall transaction count, the value being transferred across the network remains high. The average size of a Bitcoin transaction is currently hovering around $36,200, and transfers exceeding $100,000 now constitute 89% of the total network volume. This could indicate increasing activity from institutional players or large holders.
Analyzing Bitcoin Transaction Volume and Fees
Despite the lower transaction count, the daily settlement volume on the Bitcoin network averages $7.5 billion. However, daily fee revenue has dropped to approximately $500,000. This is explained by the fact that large transfers do not require high fees to get confirmed quickly if the network is not congested.
The state of the Bitcoin network highlights an interesting trend: a lower transaction count alongside a dominance of high-value transfers. This demonstrates the network's robust capability to handle significant transfers despite low fees.
