Decline in on-chain Bitcoin transaction activity
In a report dated June 20, according to sources from The Block, on-chain Bitcoin trading activity has hit its lowest level in 18 months. The 7-day average transaction volume has decreased to around 316,000 transactions, then slightly rebounding to about 350,000. Compared to the peak of 700,000 transactions in mid-2024, this is a notable decline. Investor sentiment has shifted away from native Protocols like Runes and Ordinals, as the speculative frenzy has cooled, and instead, they are paying more attention to other blockchain ecosystems.
Trends in transaction fees and the return of traditional purposes
Since the beginning of 2024, Bitcoin transaction fees have remained below $1.50, indicating that the market is no longer highly competitive for block space. Traditional money transfer operations are becoming increasingly popular, as users attempt to conduct transactions with fees below 1 sat/vB. The MARA mining team has introduced the “Slipstream” channel to handle ultra-low fee transactions, sparking controversy in the developer community over network standards and censorship issues.
Impact on the cryptocurrency market
The decline in transaction activity could significantly affect investor sentiment and Bitcoin price trends, particularly in the context of polarization between projects expanding development and traditional mining activities. Traders are gradually shifting towards other blockchain ecosystems like Ethereum or Layer 2 platforms. In this context, both developers and miners must adapt to maintain network viability in a fiercely competitive environment.
Conclusion
The cryptocurrency market is witnessing a distinct adjustment trend through Bitcoin's on-chain activity. Low transaction fees and the retreat of speculative activities affirm that most users are focusing on traditional money transfer purposes. It is expected that in the near future, blockchain ecosystems will continue to develop flexibly to adapt to these fluctuations while reinforcing network standards to ensure the sustainability of the global cryptocurrency ecosystem.
Source: https://tintucbitcoin.com/khoi-luong-bitcoin-giam-runes-ordinals-lui-tan/
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