Recent observations indicate a significant decline in the number of transactions on the Bitcoin network, despite prices nearing record levels. This trend highlights a reduction in user activity, raising concerns among market participants.
Decreasing Trends in Transaction Queues
On the previous Saturday, the mempool contained only about 5,000 transactions awaiting processing. Although this number later rose to 15,000, it is significantly lower than the 150,000 transactions recorded when BTC’s price first exceeded $100,000 in late 2024. Data shows that the number of waiting transactions has fluctuated between 3,000 and 30,000 since March, indicating relatively weak demand on the network.
Reduced Transaction Fees and Declining User Participation
Experts highlight that this decrease has also impacted miners’ revenue streams. Income from transaction fees has now become a minuscule portion of miners’ overall earnings. Joël Valenzuela, marketing and business development director, notes, 'Bitcoin's mempool is almost empty. The share of transaction fees in miner revenues has fallen below one percent.' Valenzuela further points out a significant decline in user numbers, even while price levels reached all-time highs.
Future Prospects and Risks for Bitcoin Network
Experts indicate the absence of retail users in the market. Joao Wedson, founder of Alphractal, asserts that the low density in the mempool is a clear indicator of small investors being absent from the market. These statements paint a picture that, despite price fluctuations, Bitcoin's network shows lower daily use compared to the past. Discussions also highlight the sustainability and decentralization aspects of the network.
Current indicators reveal a contraction in the network’s real use compared to past levels, despite Bitcoin’s price increase. Expert comments highlight potential risks and the importance of monitoring the relationship between price, participant density, and mining revenue.
