Recent years have seen a significant increase in Bitcoin transaction volume, especially during periods of price growth. However, recent data indicates stabilization trends.
Surge in Transaction Volume During Bull Market
During the bull markets of 2020-2021 and 2023-2024, high Bitcoin transaction activity was noted. Mempool data analysis showed significant congestion leading to increased transaction fees. The demand for block space resulted in the predominance of high-fee transactions.
Transaction Volume Decline and Stabilization
By early 2025, transaction volume had sharply declined despite Bitcoin's elevated price. This indicates a potential stabilization phase following a prolonged uptrend. The decrease in mempool congestion highlights that Bitcoin network usage may be plateauing.
Data Analysis from Cryptoquant
According to Julio Moreno, head of research at Cryptoquant, the Bitcoin mempool is almost empty, with transaction fees dropping to 1 sat/vB. This suggests transaction volumes closely mirror changes in Bitcoin prices. With the current decrease in transaction activity, it is feasible that the Bitcoin network is moving towards a more stable state.
The dynamics of Bitcoin transaction volumes in recent years suggest a strong dependency on price trends. Periods of intense price growth typically see increased transaction activity, while current data indicates stabilization trends.
