Bitcoin Network Transactions Hit 11-Month Low
Bitcoin network transactions have fallen to their lowest point in nearly a year.
| Key Takeaways: – Bitcoin network transactions have fallen to an 11-month low, with daily transactions dropping to around 400,000. – The reduction in transactions has led to a sharp drop in the number of unconfirmed transactions and fewer filled Bitcoin blocks. |
According to Julio Moreno, head of research at CryptoQuant, the drop in daily transactions marks the lowest level since March 2024. Bitcoin network transaction volumes have fallen to around 400,000 daily transactions over the past two months, down from a peak of 810,850 transactions in November 2024.
The decline in activity has caused a corresponding reduction in Bitcoin’s mempool usage, which is the storage space for unprocessed transactions. The number of unconfirmed transactions on the network has dropped sharply to about 10,000, down from over 250,000 in December 2024.
With fewer transactions, Bitcoin blocks are being mined without being fully filled, resulting in multiple blocks with significantly fewer than the average 2,000 transactions. For example, Block 881931, mined by Antpool, contained only 31 transactions.
The decrease in transactions has led to a drop in transaction fees, which now stand at just 1 sat/vB, according to mempool.space. This is a sharp contrast to the high fees seen during periods of network congestion.
While lower fees benefit users, they also represent a challenge for miners, whose earnings from transaction fees have decreased substantially. Currently, miners earn approximately $4,000 per block, compared to higher amounts during times of greater network activity.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
