Bitcoin is above $100K, but daily transactions are less than 500K, showing reduced on-chain activity at high prices.
Stablecoin-margined futures have now taken over BTC markets, with traders shifting away from crypto collateral to manage risk.
Similar to the growing dominance of large-scale, institution-sized transactions on the network, little Bitcoin transactions decreased from 34% to 11%.
Bitcoin is still trading above $100,000, despite a huge decline in network activity. Transaction counts and volume trends show a pronounced departure from price, indicating underlying shifts beneath the bullishness on the surface.
Daily Transactions Fall Despite Elevated Prices
Between January and September 2024, Bitcoin's on-chain activity peaked, according to a post by Glassnode. During this time, the volume of transactions increased to about 675,000 per day, which nearly matched the rise in the price of Bitcoin from $20,000 to $95,000. As user involvement and price increased, the network was quite active.
https://twitter.com/glassnode/status/1935743559564394832
Bitcoin's daily transaction volume has, however, drastically decreased after Q4 2024. Activity has narrowed to a range of 320,000 to 500,000 daily transactions by the middle of 2025. This pattern continues despite Bitcoin's price range reaching $100,000, indicating a decline in base-layer utilization demand.
Glassnode’s data shows that compression in on-chain volume is occurring while prices remain high. This suggests that Bitcoin's price strength is being driven more by off-chain markets than on-chain engagement.
Derivatives Market Transitions to Stablecoin Margins
Bitcoin’s futures market has also experienced a major structural shift. The dominance of crypto-margined open interest has diminished significantly since early 2023. Stablecoin-margined contracts now lead, showing a clear move toward more risk-managed trading setups.
During 2021 and 2022, open interest in cryptocurrencies regularly exceeded 0.06 of Bitcoin's realized capitalization. But by 2025, that figure had dropped to 0.03. Stablecoin demand has risen over 0.14, suggesting that market participants are growing more cautious and collateral-efficient.
This shift shows how traders are choosing stability and liquidity in response to volatility. The derivatives market has developed, placing more of a focus on capital control and hedged exposure.
Large Transfers Dominate as Small Transactions Fade
Meanwhile, Bitcoin’s transfer activity is shifting toward high-value transactions. In January 2023, transfers under $100K made up 34% of adjusted volume, mostly from small holders. But by May 2025, that number fell to just 11%, replaced by large institutional-sized movements.
As Bitcoin's price pushed higher, large transfers began to dominate volume on-chain. This signals increased involvement from institutional players or high-net-worth investors. Small retail flows have become a minority presence in the transaction mix.
Bitcoin’s current structure shows fewer users moving more capital, pointing to growing capital concentration. Network demand is no longer driven by scale but by size, and the implications for adoption and liquidity are still unfolding.
The post Bitcoin Price Diverges from On-Chain Use as Large Transactions Take Over appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
