According to The Block, Bitcoin transaction activity has dropped to its quietest stage in a year and a half, with the 7-day moving average of transaction volume falling to 316,000 last week, before slightly recovering to around 350,000 currently. This is a significant decrease compared to over 700,000 daily transactions at the peak of Bitcoin protocol applications in mid-2024.
Source: The Block
This sharp decline reflects the market's cooling enthusiasm for native Bitcoin protocols like Runes and Ordinals, which previously significantly boosted Bitcoin transaction volume through token-like features and NFT-like inscriptions.
These protocols brought applications that were originally exclusive to Ethereum into Bitcoin, but as traders' interests shifted towards other blockchain ecosystems that provide more native support for such applications, they have largely faded from mainstream view. Since the beginning of the year, Bitcoin transaction fees have remained below $1.50, indicating low competition for block space, as Bitcoin returns to its traditional use for currency transfers.
The decrease in transaction activity has also led to unexpected technical situations, with some users attempting to send transactions below the Bitcoin Core default relay threshold (1 sat/vB per virtual byte). The Bitcoin mining company MARA (formerly known as Marathon Digital) has launched a special channel called 'Slipstream' specifically to handle these non-standard, ultra-low fee transactions, which are often rejected by nodes on the Bitcoin network.
This development has sparked controversy within the Bitcoin development community, focusing on network standards and anti-censorship principles. Some developers believe that filtering low-fee transactions goes against the fundamental spirit of Bitcoin as an anti-censorship system.
Related reports: (Are inscriptions innovation or junk? Bitcoin core developers choose not to intervene, sparking heated debates in the community)
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