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Bitcoin Active Addresses Drop to Lowest Level in a Year, Sparking New Concerns About Block Space Demand
Summary: According to The Block, as the year-end approaches, Bitcoin network activity has dropped to the lowest level in 12 months, with the 7-day moving average of active addresses falling to 660,000. While seasonal slowdown was expected, multiple network indicators are showing a weak trend. Currently, the number of active addresses is at its lowest level ...
According to The Block, as the year-end approaches, Bitcoin network activity has dropped to the lowest level in 12 months, with the 7-day moving average of active addresses falling to 660,000. While seasonal slowdown was expected, multiple network indicators are showing a weak trend. Currently, the number of active addresses is at its lowest level since December 2024, when network activity peaked due to the frenzy of Ordinals and Runes speculation. The softness in network activity has also put downward pressure on miner economics, with daily income dropping from an average of $50 million in the third quarter to around $40 million. These incomes mostly come from block subsidies rather than transaction fees, highlighting the limited demand for Bitcoin block space. Unusual dynamics have emerged in Bitcoin transaction composition, with Rune transactions accounting for a larger proportion of total network transactions but contributing only 5% to 10% of total fee revenue, raising concerns about block space demand. When half of Bitcoin's transaction throughput generates negligible fees, it indicates a mismatch between network utilization and value creation.
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Link: Bitcoin Active Addresses Drop to Lowest Level in a Year, Sparking New Concerns About Block Space Demand [Copy]
