🔥In May 2025, the average transaction fee on the Bitcoin network has risen to its highest level since the beginning of the year, reaching $2.40, an increase of about $1 compared to the beginning of the month.

The rise in transaction fees indicates that the demand for transaction processing space on the Bitcoin blockchain is increasing. However, there is a paradox that despite the increase in fees, the average number of transactions per day has significantly decreased from a peak of 507,000 transactions on April 22 to around 330,000 transactions, down by as much as 35%.

Additionally, data from Glassnode shows that the amount of illiquid Bitcoin, meaning BTC held long-term in wallets with no trading activity, is at a record high. This means that the actual supply circulating in the market is limited, making prices potentially rise sharply if there is a surge in demand.

Furthermore, Bitcoin's dominance is recovering after a recent decline. This indicates that the adjustment of BTC in the past two weeks may primarily be due to low liquidity issues.