Bitcoin’s network activity has been unusually low lately – hitting an 11-month low. Let’s dive into why.
Why the Slowdown?
Recent data shows a significant drop in Bitcoin transactions. The “mempool” – where pending transactions wait – is almost empty, and transaction fees are super low. This is the quietest the network has been since March 2024.
This low activity is largely due to the hype around Runes and BRC-20 tokens dying down. These tokens, built on the Bitcoin blockchain, initially caused a huge surge in transactions (over 1.6 million in a single day!). But the excitement faded quickly.
Ripple Effects: Miners and Price
This drop in transactions has consequences. Miners earn money from transaction fees, and with fewer transactions, their income is reduced. This could affect how much they invest in the network.
The low activity isn’t great for Bitcoin’s price either. A quiet mempool often suggests less investor interest, potentially leading to price stagnation or even a drop. At the time of writing, Bitcoin is down around 2% in the last 24 hours and about 3.5% over the last week.
