Bitcoin surprises again: its price remains near historical highs, but transactional activity on the network has fallen to a minimum over the last 19 months. According to The Block, on June 1, only 256 thousand transactions were recorded on the BTC blockchain — the same amount as in October 2023, when the cryptocurrency was worth 3-4 times less.
Why is this happening? And what does it mean? Let's break it down.
The paradox of Bitcoin: high price, low activity
On one hand, Bitcoin remains a strong asset — as of June 9, it trades above $107 thousand, not far from its record ($112 thousand at the end of May). But on the other hand, the BTC network has suddenly emptied.
What do the numbers say?
On average, per week - 317 thousand transactions per day (the lowest since 2023).
Last August 2024 saw a peak — over 730 thousand transactions per day.
Until 2023, activity fluctuated between 200-350 thousand transactions, but then it suddenly increased.
Why is this happening? The main reason is the Ordinals protocol, launched at the beginning of 2023. It allowed creating NFTs directly on the Bitcoin blockchain, which sharply increased the load on the network. But now the hype has subsided, and activity has returned to 'pre-Ordinals' levels.
Is Bitcoin no longer a payment system?
Initially, BTC was conceived as an alternative to money — fast, decentralized, and independent of banks. But now it is increasingly referred to as 'digital gold', meaning an asset for long-term investments rather than everyday payments.
Rena Shah, Chief Operating Officer of Trust Machines:
"In 2025, Bitcoin will firmly establish itself as a reserve asset. People, companies, and even governments are holding it without spending it."
This confirms the Hodl trend (from English: Hold). Investors are simply accumulating BTC without selling, making it even scarcer (reminder: there will be a total of 21 million coins).
But not everyone agrees with this approach. For example, Jack Dorsey, creator of X and a staunch Bitcoin supporter, believes the community should focus on payments, not speculation.
Who is replacing Bitcoin in payments?
While BTC is turning into 'investment gold', stablecoins, primarily USDT (Tether), are filling its niche in transactions.
Chainalysis:
"Two-thirds of all cryptocurrency transactions are stablecoin operations."
Paolo Ardoino, head of Tether, even published a photo from Bolivia, where prices in stores are listed in USDT, not Bitcoin. He called it a 'silent revolution' as the digital dollar becomes part of everyday life.
But there is another way – the Lightning Network (a second-layer solution for BTC). For example:
Strike (payment system) processed over $6 billion in transactions for 2024.
Revolut (British neobank) began implementing Lightning in May.
Miles Suter, head of Bitcoin at Block (owner of Square):
"Bitcoin is not just an asset; it is also a protocol. We are working to make it the best payment system in the world."
What ultimately?
Bitcoin stands at a crossroads:
As an asset, it is strong; it is held long-term.
As a means of payment - it is losing ground to stablecoins and Lightning.
Will it continue to be 'digital gold' or return to its original idea? Time will tell.
